811-23122





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. 12



and



Registration Statement

Under

the Investment Company Act of 1940

Amendment No. 14





AMERICAN FUNDS EMERGING MARKETS BOND FUND

(Exact Name of Registrant as Specified in Charter)



6455 Irvine Center Drive

Irvine, California 92618-4518

(Address of Principal Executive Offices)



Registrant's telephone number, including area code:

(213) 486-9200





Steven I. Koszalka, Secretary

American Funds Emerging Markets Bond Fund

333 South Hope Street

Los Angeles, California 90071-1406

(Name and Address of Agent for Service)





Copies to:

Lea Anne Copenhefer

Morgan, Lewis & Bockius LLP

One Federal Street

Boston, MA 02110-1726

(Counsel for the Registrant)





Approximate date of proposed public offering:

It is proposed that this filing become effective on March 1, 2020, pursuant to paragraph (b) of Rule 485.









American Funds Emerging
Markets Bond Fund®

Prospectus

March 1, 2020




Class A C T F-1 F-2 F-3 529-A 529-C 529-E 529-T
EBNAX EBNCX TEBMX EBNEX EBNFX EBNGX CBNAX CBNCX CBNEX TMEBX
Class 529-F-1 R-1 R-2 R-2E R-3 R-4 R-5E R-5 R-6
CBNFX REGAX REGBX REGHX REGCX REGEX REGJX REGFX REGGX
Beginning January 1, 2021, as permitted by regulations adopted by the U.S. Securities and Exchange Commission, we intend to no longer mail paper copies of the fund’s shareholder reports, unless specifically requested from American Funds or your financial intermediary, such as a broker-dealer or bank. Instead, the reports will be made available on the Capital Group website (capitalgroup.com); you will be notified by mail and provided with a website link to access the report each time a report is posted. If you have already elected to receive shareholder reports electronically, you will not be affected by this change and do not need to take any action. If you prefer to receive shareholder reports and other communications electronically, you may update your mailing preferences with your financial intermediary, or enroll in e-delivery at capitalgroup.com (for accounts held directly with the fund).

You may elect to receive paper copies of all future reports free of charge. If you invest through a financial intermediary, you may contact your financial intermediary to request that you continue to receive paper copies of your shareholder reports. If you invest directly with the fund, you may inform American Funds that you wish to continue receiving paper copies of your shareholder reports by contacting us at (800) 421-4225. Your election to receive paper reports will apply to all funds held with American Funds or through your financial intermediary.




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.





Table of contents


Investment objective 1
Fees and expenses of the fund 1
Principal investment strategies 3
Principal risks 4
Investment results 7
Management 9
Purchase and sale of fund shares 9
Tax information 9
Payments to broker-dealers and other financial intermediaries 9
Investment objective, strategies and risks 10
Prior investment results of Capital Research and Management Company and its affiliates 18
Management and organization 20
Shareholder information 22
Purchase, exchange and sale of shares 23
How to sell shares 29
Distributions and taxes 33
Choosing a share class 34
Sales charges 35
Sales charge reductions and waivers 39
Rollovers from retirement plans to IRAs 45
Plans of distribution 47
Other compensation to dealers 47
Fund expenses 49
Financial highlights 51
Appendix 56







Investment objective The fund’s investment objective is to provide a high level of total return over the long term, of which current income is a large component.

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. In addition to the fees and expenses described below, you may also be required to pay brokerage commissions on purchases and sales of Class F-2 or F-3 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 $100,000 in American Funds. More information about these and other discounts is available from your financial professional, in the “Sales charge reductions and waivers” sections on page 39 of the prospectus and on page 80 of the fund’s statement of additional information, and in the sales charge waiver appendix to this prospectus.


Shareholder fees (fees paid directly from your investment)
Share class: A and
529-A C and
529-C 529-E T and
529-T All F and 529-F share classes All R
share
classes
Maximum sales charge (load) imposed on purchases (as a percentage of offering price) 3.75% none none 2.50% none none
Maximum deferred sales charge (load) (as a percentage of the amount redeemed) 1.001 1.00% none 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
American Funds Emerging Markets Bond Fund / Prospectus 1







Annual fund operating expenses (expenses that you pay each year as a percentage of the value of your investment)
Share class: A C T F-1 F-2 F-3 529-A
Management fees2 0.55% 0.55% 0.55% 0.55% 0.55% 0.55% 0.55%
Distribution and/or service (12b-1) fees 0.25 1.00 0.25 0.25 none none 0.22
Other expenses2 0.23 0.23 0.23 0.25 0.24 0.18 0.28
Total annual fund operating expenses 1.03 1.78 1.03 1.05 0.79 0.73 1.05
Fee waiver and/or expense reimbursement3 0.02 0.02 0.02 0.02 0.02 0.084 0.02
Total annual fund operating expenses after fee waiver and/or expense reimbursement 1.01 1.76 1.01 1.03 0.77 0.65 1.03

Share class: 529-C 529-E 529-T 529-F-1 R-1 R-2 R-2E
Management fees2 0.55% 0.55% 0.55% 0.55% 0.55% 0.55% 0.55%
Distribution and/or service (12b-1) fees 1.00 0.50 0.25 0.00 1.00 0.75 0.60
Other expenses2 0.28 0.23 0.28 0.28 0.25 0.43 0.31
Total annual fund operating expenses 1.83 1.28 1.08 0.83 1.80 1.73 1.46
Fee waiver and/or expense reimbursement3 0.02 0.02 0.02 0.02 0.04 0.02 0.02
Total annual fund operating expenses after fee waiver and/or expense reimbursement 1.81 1.26 1.06 0.81 1.76 1.71 1.44

Share class: R-3 R-4 R-5E R-5 R-6
Management fees2 0.55% 0.55% 0.55% 0.55% 0.55%
Distribution and/or service (12b-1) fees 0.50 0.25 none none none
Other expenses2 0.25 0.23 0.24 0.17 0.11
Total annual fund operating expenses 1.30 1.03 0.79 0.72 0.66
Fee waiver and/or expense reimbursement3 0.02 0.02 0.02 0.02 0.02
Total annual fund operating expenses after fee waiver and/or expense reimbursement 1.28 1.01 0.77 0.70 0.64
1 A contingent deferred sales charge of 1.00% applies on certain redemptions made within 18 months following purchases of $1 million or more made without an initial sales charge. Contingent deferred sales charge is calculated based on the lesser of the offering price and market value of shares being sold.

2 Restated to reflect current fees.

3 The investment adviser is currently reimbursing a portion of the other expenses. This reimbursement will be in effect through at least March 1, 2021. The adviser may elect at its discretion to extend, modify or terminate the reimbursement at that time.

4 The fund’s transfer agent is currently waiving a portion of the other expenses. This waiver will be in effect through at least March 1, 2021. The transfer agent may elect at its discretion to extend, modify or terminate the waiver at that time.

2 American Funds Emerging Markets Bond Fund / Prospectus






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. The example reflects the fee waiver and/or expense reimbursement described above through the expiration date of such waiver and/or reimbursement and total annual fund operating expenses thereafter. You may be required to pay brokerage commissions on your purchases and sales of Class F-2 or F-3 shares of the fund, which are not reflected in the example. Although your actual costs may be higher or lower, based on these assumptions your costs would be:


Share class: A C T F-1 F-2 F-3 529-A 529-C 529-E 529-T 529-F-1 R-1 R-2
1 year $474 $279 $350 $105 $79 $66 $476 $284 $128 $355 $83 $179 $174
3 years 689 558 568 332 250 225 695 574 404 583 263 563 543
5 years 920 963 803 577 437 398 931 988 700 829 459 971 937
10 years 1,585 2,093 1,476 1,281 976 899 1,608 2,146 1,543 1,532 1,023 2,113 2,039

Share class: R-2E R-3 R-4 R-5E R-5 R-6 For the share classes listed to the right, you would pay the following if you did not redeem your shares: Share class: C 529-C
1 year $147 $130 $103 $79 $72 $65 1 year $179 $184
3 years 460 410 326 250 228 209 3 years 558 574
5 years 796 711 567 437 399 366 5 years 963 988
10 years 1,745 1,566 1,258 976 893 821 10 years 2,093 2,146
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 54% of the average value of its portfolio.

Principal investment strategies The fund will invest at least 80% of its net assets (including any borrowing for investment purposes) in bonds and other debt securities, which may be represented by other investment instruments, including derivatives. The fund will invest at least 80% of its net assets (including any borrowing for investment purposes) in securities of emerging markets issuers, defined as securities: (1) that are from issuers in emerging markets as defined by global index providers designated by the investment adviser (for example, the investment adviser expects that most emerging markets included in any one of the Morgan Stanley Capital Index (MSCI) Emerging Markets or Frontier Market Indices or J.P. Morgan Emerging Markets Bond and J.P. Morgan Global Bond Indices will be treated as emerging markets); (2) that are denominated in emerging markets currencies; (3) that are from issuers deemed to be suitable for the fund because they have or are expected to have significant economic exposure to emerging markets (through assets, revenues, or profits); (4) that are issued by countries rated Ba/BB or lower; or (5) that are issued by countries that are on an International Monetary Fund (“IMF”) program, have outstanding liabilities to the IMF or have exited an IMF program no more than five years earlier. The IMF’s primary purpose is to ensure the stability of the international monetary system. Under an IMF lending program, certain countries may request financial assistance to help correct balance of payment problems in those countries. The fund may invest up to 100% of its assets in

American Funds Emerging Markets Bond Fund / Prospectus 3






securities denominated in currencies other than the U.S. dollar. The fund may invest in any quality debt securities with a wide range of maturities.

The fund may invest in certain derivative instruments, such as forward currency contracts, futures contracts and swaps. A derivative is a financial contract, the value of which is based on the value of an underlying financial asset (such as a stock, bond or currency), a reference rate or a market index. The fund may invest in a derivative only if, in the opinion of the investment adviser, the expected risks and rewards of the proposed investment are consistent with the investment objective and strategies of the fund as disclosed in this prospectus and in the fund’s statement of additional information.

The fund invests primarily in securities of emerging market issuers, including for example, sovereign debt of emerging market countries and debt of companies located in or with substantial business in emerging markets. Such securities may be rated Ba1 or below and BB+ or below, and may also include securities rated C or D, by Nationally Recognized Statistical Ratings Organizations designated by the fund’s investment adviser, or in securities that are unrated but determined to be of equivalent quality by the fund’s investment adviser and are sometimes referred to as “junk bonds.” Ratings are only one of many factors the investment adviser considers when investing in emerging markets and are not necessarily determinative of the potential return on the investment.

The fund is nondiversified, which allows it to invest a greater percentage of its assets in any one issuer than would otherwise be the case. However, the fund intends to comply with the diversification and other requirements of the U.S. Internal Revenue Code of 1986, as amended.

The fund’s assets are managed by a team of portfolio managers. Under this approach, the fund’s managers will work together to oversee the fund’s entire portfolio.

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. 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 investing in the fund. 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 – sometimes rapidly or unpredictably – due to various factors, including events or conditions affecting the general economy or particular industries; overall market changes; local, regional or global political, social or economic instability; governmental, governmental agency or central bank responses to economic conditions; and currency exchange rate, interest rate and commodity price fluctuations.

Issuer risks — The prices of, and the income generated by, securities held by the fund may decline in response to various factors directly related to the issuers of such securities, including reduced demand for an issuer’s goods or services, poor management performance, major litigation related to the issuer, changes in government regulations affecting the issuer or its competitive environment and strategic initiatives

4 American Funds Emerging Markets Bond Fund / Prospectus






such as mergers, acquisitions or dispositions and the market response to any such initiatives.

Investing in debt instruments — The prices of, and the income generated by, 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.

Rising interest rates will generally cause the prices of bonds and other debt securities to fall. A general rise in interest rates may cause investors to sell debt securities on a large scale, which could also adversely affect the price and liquidity of debt securities and could also result in increased redemptions from the fund. 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 failing to recoup the full amount of its initial investment and having to reinvest the proceeds in lower yielding securities. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities.

Bonds and other debt securities are also subject to credit risk, which is the possibility that the credit strength of an issuer or guarantor will weaken or be perceived to be weaker, 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. A downgrade or default affecting any of the fund’s securities could cause the value of the fund’s shares to decrease. 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 debt 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 assess credit and default risks.

Investing in lower rated debt instruments — Lower rated bonds and other lower rated debt securities generally have higher rates of interest and involve greater risk of default or price declines due to changes in the issuer’s creditworthiness than those of higher quality debt securities. The market prices of these securities may fluctuate more than the prices of higher quality debt securities and may decline significantly in periods of general economic difficulty. These risks may be increased with respect to investments in junk bonds.

Investing in derivatives — The use of derivatives involves a variety of risks, which may be different from, or greater than, the risks associated with investing in traditional securities, such as stocks and bonds. Changes in the value of a derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and a derivative instrument may expose the fund to losses in excess of its initial investment. Derivatives may be difficult to value, difficult for the fund to buy or sell at an opportune time or price and difficult, or even impossible, to terminate or otherwise offset. The fund’s use of derivatives may result in losses to the fund, and investing in derivatives may reduce the fund’s returns and increase the fund’s price volatility. The fund’s counterparty to a derivative transaction (including, if applicable, the fund’s clearing broker, the derivatives exchange or the clearinghouse) may be unable or unwilling to honor its financial obligations in respect of the transaction. In certain cases, the fund may be hindered or delayed in exercising remedies against or closing out derivative instruments with a counterparty, which may result in additional losses.

American Funds Emerging Markets Bond Fund / Prospectus 5






Liquidity risk — Certain fund holdings may be or may become difficult or impossible to sell, particularly during times of market turmoil. Liquidity may be impacted by the lack of an active market for a holding, legal or contractual restrictions on resale, or the reduced number and capacity of market participants to make a market in such holding. Market prices for less liquid or illiquid holdings may be volatile, and reduced liquidity may have an adverse impact on the market price of such holdings. Additionally, the sale of less liquid or illiquid holdings may involve substantial delays (including delays in settlement) and additional costs and the fund may be unable to sell such holdings when necessary to meet its liquidity needs or may be forced to sell at a loss.

Investing outside the United States — Securities of issuers domiciled outside the United States, or with significant operations or revenues outside the United States, may lose value because of adverse political, social, economic or market developments (including social instability, regional conflicts, terrorism and war) in the countries or regions in which the issuers operate or generate revenue. These securities may also lose value due to changes in foreign currency exchange rates against the U.S. dollar and/or currencies of other countries. Issuers of these securities may be more susceptible to actions of foreign governments, such as nationalization, currency blockage or the imposition of price controls or punitive taxes, each of which could adversely impact the value of these securities. Securities markets in certain countries may be more volatile and/or less liquid than those in the United States. Investments outside the United States may also be subject to different accounting practices and different regulatory, legal and reporting standards and practices, and may be more difficult to value, than those in the United States. In addition, the value of investments outside the United States may be reduced by foreign taxes, including foreign withholding taxes on interest and dividends. Further, there may be increased risks of delayed settlement of securities purchased or sold by the fund. The risks of investing outside the United States may be heightened in connection with investments in emerging markets.

Investing in emerging markets — Investing in emerging markets may involve risks in addition to and greater than those generally associated with investing in the securities markets of developed countries. For instance, emerging market countries may have less developed legal and accounting systems than those in developed countries. The governments of these countries may be less stable and more likely to impose capital controls, nationalize a company or industry, place restrictions on foreign ownership and on withdrawing sale proceeds of securities from the country, and/or impose punitive taxes that could adversely affect the prices of securities. In addition, the economies of these countries may be dependent on relatively few industries that are more susceptible to local and global changes. Securities markets in these countries can also be relatively small and have substantially lower trading volumes. As a result, securities issued in these countries may be more volatile and less liquid, and may be more difficult to value, than securities issued in countries with more developed economies and/or markets. Less certainty with respect to security valuations may lead to additional challenges and risks in calculating the fund’s net asset value. Additionally, emerging markets are more likely to experience problems with the clearing and settling of trades and the holding of securities by banks, agents and depositories that are less established than those in developed countries.

Currency — The prices of, and the income generated by, many debt securities held by the fund may also be affected by changes in relative currency values. If the U.S. dollar

6 American Funds Emerging Markets Bond Fund / Prospectus






appreciates against foreign currencies, the value in U.S. dollars of the fund’s securities denominated in such currencies would generally fall and vice versa. U.S. dollar-denominated securities of foreign issuers may also be affected by changes in relative currency values.

Nondiversification risk — As a nondiversified fund, the fund has the ability to invest a larger percentage of its assets in the securities of a smaller number of issuers than a diversified fund. Poor performance by a single large holding could adversely impact the fund’s investment results more than if the fund were invested in a larger number of issuers.

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, including models, tools and data, employed by the investment adviser in this process may be flawed or incorrect and 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 a broad measure of securities market results and other applicable measures of market results. This information provides some indication of the risks of investing in the fund. The J.P. Morgan Index Blend - 50% J.P. Morgan Emerging Markets Bond Index (EMBI) Global Diversified & 50% J.P. Morgan Government Bond Index - Emerging Markets (GBI-EM) Global Diversified reflects the bond market sectors in which the fund invests. The Lipper Emerging Markets Hard Currency Debt Funds Average includes the fund and other 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 capitalgroup.com.



American Funds Emerging Markets Bond Fund / Prospectus 7







Average annual total returns For the periods ended December 31, 2019 (with maximum sales charge):
Share class Inception date 1 year Lifetime
A — Before taxes 4/22/2016 9.47% 5.11%
— After taxes on distributions 7.77 2.83
— After taxes on distributions and sale of fund shares 5.61 2.89

Share classes (before taxes) Inception date 1 year Lifetime
C 7/29/2016 11.82% 4.86%
F-1 7/29/2016 13.64 5.59
F-2 7/29/2016 13.94 5.85
F-3 1/27/2017 14.05 6.94
529-A 7/29/2016 9.36 4.39
529-C 7/29/2016 11.79 4.87
529-E 7/29/2016 13.40 5.41
529-F-1 7/29/2016 13.88 5.82
R-1 7/29/2016 13.11 5.19
R-2 7/29/2016 12.90 5.04
R-2E 7/29/2016 13.20 5.54
R-3 7/29/2016 13.37 5.41
R-4 7/29/2016 13.67 5.68
R-5E 7/29/2016 14.05 5.93
R-5 7/29/2016 14.01 5.93
R-6 7/29/2016 14.07 5.92

Indexes 1 year Lifetime
(from Class A inception)
J.P. Morgan Emerging Markets Bond Index (EMBI) Global Diversified (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 15.04% 6.34%
J.P. Morgan Government Bond Index - Emerging Markets (GBI-EM) Global Diversified (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 13.47 5.16
J.P. Morgan Index Blend - 50% JPM EMBI Global Diversified & 50% JPM GBI-EM Global Diversified (reflects no deductions for sales charges, account fees, expenses or U.S. federal income taxes) 14.31 5.82
Lipper Emerging Markets Hard Currency Debt Funds Average (reflects no deductions for sales charges, account fees or U.S. federal income taxes) 13.21 5.73
Class A annualized 30–day yield at December 31, 2019: 5.40%
(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.

8 American Funds Emerging Markets Bond Fund / Prospectus






Management

Investment adviser Capital Research and Management CompanySM
Portfolio managers The individuals primarily responsible for the portfolio management of the fund are:


Portfolio manager/
Fund title (if applicable) Portfolio
manager
experience
in this fund Primary title
with investment adviser
Robert H. Neithart President 4 years Partner – Capital Fixed Income Investors
Luis Freitas de Oliveira Senior Vice President 1 year Partner – Capital Fixed Income Investors
Kirstie Spence Senior Vice President 4 years Partner – Capital Fixed Income Investors

Purchase and sale of fund shares The minimum amount to establish an account for all share classes is normally $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. For accounts with Class F-3 shares held and serviced by the fund’s transfer agent, the minimum investment amount is $1 million.

If you are a retail investor, you may sell (redeem) shares on any business day 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 capitalgroup.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.

American Funds Emerging Markets Bond Fund / Prospectus 9






Investment objective, strategies and risks The fund’s investment objective is to provide a high level of total return over the long term, of which current income is a large component. While it has no present intention to do so, the fund’s board may change the fund’s investment objective without shareholder approval upon 60 days’ written notice to shareholders.

The fund will invest at least 80% of its net assets (including any borrowing for investment purposes) in bonds and other debt securities, which may be represented by other investment instruments, including derivatives. This policy is subject to change only upon 60 days’ written notice to shareholders. The fund will invest at least 80% of its net assets (including any borrowing for investment purposes) in securities of emerging markets issuers, defined as securities: (1) that are from issuers in emerging markets as defined by global index providers designated by the investment adviser (for example, the investment adviser expects that most emerging markets included in any one of the Morgan Stanley Capital Index (MSCI) Emerging Markets or Frontier Market Indices or J.P. Morgan Emerging Markets Bond and J.P. Morgan Global Bond Indices will be treated as emerging markets); (2) that are denominated in emerging markets currencies; (3) that are from issuers deemed to be suitable for the fund because they have or are expected to have significant economic exposure to emerging markets (through assets, revenues, or profits); (4) that are issued by countries rated Ba/BB or lower; or (5) that are issued by countries that are on an International Monetary Fund (“IMF”) program, have outstanding liabilities to the IMF or have exited an IMF program no more than five years earlier. This policy is subject to change only upon 60 days’ written notice to shareholders. The IMF’s primary purpose is to ensure the stability of the international monetary system. Under an IMF lending program, certain countries may request financial assistance to help correct balance of payment problems in those countries. The fund may invest up to 100% of its assets in securities denominated in currencies other than the U.S. dollar. The fund may invest in any quality debt securities with a wide range of maturities.

The fund may invest in certain derivative instruments. A derivative is a financial contract, the value of which is based on the value of an underlying financial asset (such as a stock, bond or currency), a reference rate or a market index. The fund may invest in a derivative only if, in the opinion of the investment adviser, the expected risks and rewards of the proposed investment are consistent with the investment objective and strategies of the fund as disclosed in this prospectus and in the fund’s statement of additional information.

Among other derivative instrument types, the fund may invest in futures contracts and interest rate swaps in order to seek to manage the fund’s sensitivity to interest rates, and in credit default swap indices, or CDX, in order to assume exposure to a diversified portfolio of credits or to hedge against existing credit risks. A futures contract is a standardized exchange-traded agreement to buy or sell a specific quantity of an underlying asset, rate or index at an agreed-upon price at a stipulated future date. An interest rate swap is an agreement between two parties to exchange or swap payments based on changes in one or more interest rates, one of which is typically fixed and the other of which is typically a floating rate based on a designated short-term interest rate, such as the London Interbank Offered Rate, prime rate or other benchmark. A CDX is based on a portfolio of credit default swaps with similar characteristics, such as credit default swaps on high-yield bonds. In a typical CDX transaction, one party – the protection buyer – is obligated to pay the other party – the protection seller – a stream of

10 American Funds Emerging Markets Bond Fund / Prospectus






periodic payments over the term of the contract, provided generally that no credit event on an underlying reference obligation has occurred. If such a credit event has occurred, the protection seller must pay the protection buyer the loss on those credits.

The fund may also enter into currency transactions to provide for the purchase or sale of a currency needed to purchase a security denominated in such currency. In addition, the fund may enter into forward currency contracts to protect against changes in currency exchange rates, to increase exposure to a particular foreign currency, to shift exposure to currency fluctuations from one currency to another or to seek to increase returns. A forward currency contract is an agreement to purchase or sell a specific currency at a future date at a fixed price.

The fund invests primarily in securities of emerging market issuers, including for example, sovereign debt of emerging market countries and debt of companies located in or with substantial business in emerging markets. Such securities may be rated Ba1 or below and BB+ or below, and may also include securities rated C or D, by Nationally Recognized Statistical Ratings Organizations designated by the fund’s investment adviser, or in securities that are unrated but determined to be of equivalent quality by the fund’s investment adviser and are sometimes referred to as “junk bonds.” Ratings are only one of many factors the investment adviser considers when investing in emerging markets and are not necessarily determinative of the potential return on the investment.

The fund is nondiversified, which allows it to invest a greater percentage of its assets in any one issuer than would otherwise be the case. However, the fund intends to comply with the diversification and other requirements of the U.S. Internal Revenue Code of 1986, as amended.

Although not ordinarily consistent with the fund’s principal investment strategies, the fund may hold cash or cash equivalents, including commercial paper and short-term securities issued by the U.S. government, its agencies and instrumentalities for various reasons as described below. The percentage of the fund invested in such holdings varies and depends on various factors, including market conditions and purchases and redemptions of fund shares. The investment adviser may determine that it is appropriate to invest a substantial portion of the fund’s assets in such instruments in response to certain circumstances, such as periods of market turmoil. For temporary defensive purposes, the fund may invest without limitation in such instruments. A larger percentage of such holdings could moderate the fund’s investment results in a period of rising market prices. Alternatively, a larger percentage of such holdings 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 daily cash balance may be invested in one or more money market or similar funds managed by the investment adviser or its affiliates (“Central Funds”). Shares of Central Funds are not offered to the public and are only purchased by the fund’s investment adviser and its affiliates and other funds, investment vehicles and accounts managed by the fund’s investment adviser and its affiliates. When investing in Central Funds, the fund bears its proportionate share of the expenses of the Central Funds in which it invests but does not bear additional management fees through its investment in such Central Funds. The investment results of the portions of the fund’s assets invested in the Central Funds will be based upon the investment results of the Central Funds.

American Funds Emerging Markets Bond Fund / Prospectus 11






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 through fundamental research, which may include analysis of credit quality, general economic conditions and various quantitative measures and, in the case of corporate obligations, meeting with company executives and employees, suppliers, customers and competitors. Securities may be sold when the investment adviser believes that they no longer represent relatively attractive investment opportunities.

The following are principal risks associated with the fund’s investment strategies.

Market conditions — The prices of, and the income generated by, the securities held by the fund may decline – sometimes rapidly or unpredictably – due to various factors, including events or conditions affecting the general economy or particular industries; overall market changes; local, regional or global political, social or economic instability; governmental, governmental agency or central bank responses to economic conditions; and currency exchange rate, interest rate and commodity price fluctuations.

Economies and financial markets throughout the world are interconnected. Economic, financial or political events, trading and tariff arrangements, wars, terrorism, cybersecurity events, natural disasters and other circumstances in one country or region could have impacts on global economies or markets. As a result, whether or not the fund invests in securities of issuers located in or with significant exposure to the countries affected, the value and liquidity of the fund’s investments may be negatively affected by developments in other countries and regions.

Issuer risks — The prices of, and the income generated by, securities held by the fund may decline in response to various factors directly related to the issuers of such securities, including reduced demand for an issuer’s goods or services, poor management performance, major litigation related to the issuer, changes in government regulations affecting the issuer or its competitive environment and strategic initiatives such as mergers, acquisitions or dispositions and the market response to any such initiatives.

Investing in debt instruments — The prices of, and the income generated by, 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.

Rising interest rates will generally cause the prices of bonds and other debt securities to fall. A general rise in interest rates may cause investors to sell debt securities on a large scale, which could also adversely affect the price and liquidity of debt securities and could also result in increased redemptions from the fund. 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 failing to recoup the full amount of its initial investment and having to reinvest the proceeds in lower yielding securities. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities.

Bonds and other debt securities are also subject to credit risk, which is the possibility that the credit strength of an issuer or guarantor will weaken or be perceived to be weaker,

12 American Funds Emerging Markets Bond Fund / Prospectus






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. A downgrade or default affecting any of the fund’s securities could cause the value of the fund’s shares to decrease. 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 debt 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 assess credit and default risks.

Investing in lower rated debt instruments — Lower rated bonds and other lower rated debt securities generally have higher rates of interest and involve greater risk of default or price declines due to changes in the issuer’s creditworthiness than those of higher quality debt securities. The market prices of these securities may fluctuate more than the prices of higher quality debt securities and may decline significantly in periods of general economic difficulty. These risks may be increased with respect to investments in junk bonds.

Investing in derivatives — The use of derivatives involves a variety of risks, which may be different from, or greater than, the risks associated with investing in traditional securities, such as stocks and bonds. Changes in the value of a derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and a derivative instrument may expose the fund to losses in excess of its initial investment. Derivatives may be difficult to value, difficult for the fund to buy or sell at an opportune time or price and difficult, or even impossible, to terminate or otherwise offset. The fund’s use of derivatives may result in losses to the fund, and investing in derivatives may reduce the fund’s returns and increase the fund’s price volatility. The fund’s counterparty to a derivative transaction (including, if applicable, the fund’s clearing broker, the derivatives exchange or the clearinghouse) may be unable or unwilling to honor its financial obligations in respect of the transaction. In certain cases, the fund may be hindered or delayed in exercising remedies against or closing out derivative instruments with a counterparty, which may result in additional losses.

Liquidity risk — Certain fund holdings may be or may become difficult or impossible to sell, particularly during times of market turmoil. Liquidity may be impacted by the lack of an active market for a holding, legal or contractual restrictions on resale, or the reduced number and capacity of market participants to make a market in such holding. Market prices for less liquid or illiquid holdings may be volatile, and reduced liquidity may have an adverse impact on the market price of such holdings. Additionally, the sale of less liquid or illiquid holdings may involve substantial delays (including delays in settlement) and additional costs and the fund may be unable to sell such holdings when necessary to meet its liquidity needs or may be forced to sell at a loss.

Investing outside the United States — Securities of issuers domiciled outside the United States, or with significant operations or revenues outside the United States, may lose value because of adverse political, social, economic or market developments (including social instability, regional conflicts, terrorism and war) in the countries or regions in which the issuers operate or generate revenue. These securities may also lose value due to changes in foreign currency exchange rates against the U.S. dollar and/or currencies of other countries. Issuers of these securities may be more susceptible to actions of foreign governments, such as nationalization, currency blockage or the imposition of

American Funds Emerging Markets Bond Fund / Prospectus 13






price controls or punitive taxes, each of which could adversely impact the value of these securities. Securities markets in certain countries may be more volatile and/or less liquid than those in the United States. Investments outside the United States may also be subject to different accounting practices and different regulatory, legal and reporting standards and practices, and may be more difficult to value, than those in the United States. In addition, the value of investments outside the United States may be reduced by foreign taxes, including foreign withholding taxes on interest and dividends. Further, there may be increased risks of delayed settlement of securities purchased or sold by the fund. The risks of investing outside the United States may be heightened in connection with investments in emerging markets.

Investing in emerging markets — Investing in emerging markets may involve risks in addition to and greater than those generally associated with investing in the securities markets of developed countries. For instance, emerging market countries may have less developed legal and accounting systems than those in developed countries. The governments of these countries may be less stable and more likely to impose capital controls, nationalize a company or industry, place restrictions on foreign ownership and on withdrawing sale proceeds of securities from the country, and/or impose punitive taxes that could adversely affect the prices of securities. In addition, the economies of these countries may be dependent on relatively few industries that are more susceptible to local and global changes. Securities markets in these countries can also be relatively small and have substantially lower trading volumes. As a result, securities issued in these countries may be more volatile and less liquid, and may be more difficult to value, than securities issued in countries with more developed economies and/or markets. Less certainty with respect to security valuations may lead to additional challenges and risks in calculating the fund’s net asset value. Additionally, emerging markets are more likely to experience problems with the clearing and settling of trades and the holding of securities by banks, agents and depositories that are less established than those in developed countries.

Currency — The prices of, and the income generated by, many debt securities held by the fund may also be affected by changes in relative currency values. If the U.S. dollar appreciates against foreign currencies, the value in U.S. dollars of the fund’s securities denominated in such currencies would generally fall and vice versa. U.S. dollar-denominated securities of foreign issuers may also be affected by changes in relative currency values.

Nondiversification risk — As a nondiversified fund, the fund has the ability to invest a larger percentage of its assets in the securities of a smaller number of issuers than a diversified fund. Poor performance by a single large holding could adversely impact the fund’s investment results more than if the fund were invested in a larger number of issuers.

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, including models, tools and data, employed by the investment adviser in this process may be flawed or incorrect and 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.

The following are additional risks associated with investing in the fund.

14 American Funds Emerging Markets Bond Fund / Prospectus






Interest rate risk — The values and liquidity of the securities held by the fund may be affected by changing interest rates. For example, the values of these securities may decline when interest rates rise and increase when interest rates fall. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities. The fund may invest in variable and floating rate securities. When the fund holds variable or floating rate securities, a decrease in market interest rates will adversely affect the income received from such securities and the net asset value of the fund’s shares. Although the values of such securities are generally less sensitive to interest rate changes than those of other debt securities, the value of variable and floating rate securities may decline if their interest rates do not rise as quickly, or as much, as market interest rates. Conversely, floating rate securities will not generally increase in value if interest rates decline. During periods of extremely low short-term interest rates, the fund may not be able to maintain a positive yield and, given the current low interest rate environment, risks associated with rising rates are currently heightened.

Investing in futures contracts — In addition to the risks generally associated with investing in derivative instruments, futures contracts are subject to the creditworthiness of the clearing organizations, exchanges and futures commission merchants with which the fund transacts. Additionally, although futures require only a small initial investment in the form of a deposit of initial margin, the amount of a potential loss on a futures contract could greatly exceed the initial amount invested. While futures contracts are generally liquid instruments, under certain market conditions futures may be deemed to be illiquid. For example, the fund may be temporarily prohibited from closing out its position in a futures contract if intraday price change limits or limits on trading volume imposed by the applicable futures exchange are triggered. If the fund is unable to close out a position on a futures contract, the fund would remain subject to the risk of adverse price movements until the fund is able to close out the futures position. The ability of the fund to successfully utilize futures contracts may depend in part upon the ability of the fund’s investment adviser to accurately forecast interest rates and other economic factors and to assess and predict the impact of such economic factors on the futures in which the fund invests. If the investment adviser incorrectly forecasts economic developments or incorrectly predicts the impact of such developments on the futures in which it invests, the fund could be exposed to the risk of loss.

Investing in swaps — Swaps, including interest rate swaps and credit default swap indices, or CDX, are subject to many of the risks generally associated with investing in derivative instruments. Additionally, although swaps require no or only a small initial investment in the form of a deposit of initial margin, the amount of a potential loss on a swap contract could greatly exceed the initial amount invested. The use of swaps involves the risk that the investment adviser will not accurately predict anticipated changes in interest rates or other economic factors, which may result in losses to the fund. If the fund enters into a bilaterally negotiated swap transaction, the counterparty may fail to perform in accordance with the terms of the swap agreement. If a counterparty defaults on its obligations under a swap agreement, the fund may lose any amount it expected to receive from the counterparty, potentially including amounts in excess of the fund’s initial investment. Certain swap transactions are subject to mandatory central clearing or may be eligible for voluntary central clearing. Although clearing interposes a central clearinghouse as the ultimate counterparty to each participant’s swap, central clearing will not eliminate (but may decrease) counterparty risk relative to uncleared bilateral

American Funds Emerging Markets Bond Fund / Prospectus 15






swaps. Some swaps, such as CDX, may be dependent on both the individual credit of the fund’s counterparty and on the credit of one or more issuers of any underlying assets. If the fund does not correctly evaluate the creditworthiness of its counterparty and, where applicable, of issuers of any underlying reference assets, the fund’s investment in a swap may result in losses to the fund.

Currency transactions — In addition to the risks generally associated with investing in derivative instruments, the use of forward currency contracts involves the risk that currency movements will not be accurately predicted by the investment adviser, which could result in losses to the fund. While entering into forward currency contracts could minimize the risk of loss due to a decline in the value of the hedged currency, it could also limit any potential gain that may result from an increase in the value of the currency. Additionally, the adviser may use forward currency contracts to increase exposure to a certain currency or to shift exposure to currency fluctuations from one country to another. Forward currency contracts may expose the fund to potential gains and losses in excess of the initial amount invested.

Exposure to country, region, industry or sector — Subject to the fund’s investment limitations, the fund may have significant exposure to a particular country, region, industry or sector. Such exposure may cause the fund to be more impacted by risks relating to and developments affecting the country, region, industry or sector, and thus its net asset value may be more volatile, than a fund without such levels of exposure. For example, if the fund has significant exposure in a particular country, then social, economic, regulatory or other issues that negatively affect that country may have a greater impact on the fund than on a fund that is more geographically diversified.

In addition to the principal investment strategies described above, the fund has other investment practices that are described in the statement of additional information, which includes a description of other risks related to the fund’s principal investment strategies and other investment practices. The fund’s investment results will depend on the ability of the fund’s investment adviser to navigate the risks discussed above as well as those described in the statement of additional information.

16 American Funds Emerging Markets Bond Fund / Prospectus






Fund comparative indexes The investment results table in this prospectus show how the fund’s average annual total returns compare with various broad measures of market results. The J.P. Morgan Emerging Markets Bond Index (EMBI) Global Diversified is a uniquely weighted emerging market debt benchmark that tracks total returns for U.S. dollar-denominated bonds issued by emerging market sovereign and quasi-sovereign entities. This index is unmanaged, and its results include reinvested dividends and/or distributions but do not reflect the effect of account fees, expenses or U.S. federal income taxes. The J.P. Morgan Government Bond Index – Emerging Markets (GBI-EM) Global Diversified covers the universe of regularly traded, liquid fixed-rate, domestic currency emerging market government bonds to which international investors can gain exposure. This index is unmanaged, and its results include reinvested dividends and/or distributions but do not reflect the effect of account fees, expenses or U.S. federal income taxes. The J.P. Morgan Index Blend – 50% J.P. Morgan EMBI Global Diversified & 50% J.P. Morgan GBI-EM Global Diversified tracks the universe of regularly traded, liquid and fixed-rate local and external sovereign debt issued by emerging markets. 50% of the index covers U.S. dollar-denominated emerging markets sovereign bonds and the remaining 50% has exposure to local government bonds issued by emerging market countries except India and China, which have capital controls. This index is unmanaged, and its results include reinvested dividends and/or distributions but do not reflect the effect of account fees, expenses or U.S. federal income taxes. The Lipper Emerging Markets Hard Currency Debt Funds Average is composed of funds that seek either current income or total return by investing at least 65% of total assets in emerging market debt securities, where “emerging market” is defined by a country’s gross national product per capita or other economic measures. 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.

American Funds Emerging Markets Bond Fund / Prospectus 17






Prior investment results of Capital Research and Management Company and its affiliates

The following tables show composite investment results based on the historical results of the fund and all other accounts (the “other accounts”) managed by Capital Research and Management Company, the investment adviser to the fund, and its affiliates with investment objectives, policies, strategies and risks substantially similar to those of the fund. The current composition of the management team of the other accounts is substantially the same as the composition of the fund’s management team, but the composition of the management team of the other accounts has changed over time. The composite investment results are provided to illustrate the past performance of the investment adviser and its affiliates in managing the composite as measured against an appropriate index. The composite investment results do not represent the historical results of the fund and should not be interpreted as indicative of the future results of the fund or the investment adviser or be considered a substitute for the fund’s investment results.

The composite investment results below are shown (i) net of the highest total annual operating fees and expenses after any fee waivers and/or expense reimbursements (1.81%) and (ii) net of the highest management fees (0.60%), in each case in effect as of the date of this prospectus for any account in the composite that is offered to U.S. investors. All returns presented are asset-weighted and reflect the reinvestment (net of foreign withholding taxes) of dividends, interest and other earnings. Withholding tax rates apply primarily to U.S. investors. All returns reflect the deduction of brokerage commissions and execution costs paid by the accounts, and are shown before federal and state income taxes.

The other accounts that are included in the composite are not subject to certain investment limitations, diversification requirements and other restrictions imposed by the Investment Company Act of 1940 and the Internal Revenue Code of 1986, which, if applicable, might have adversely affected the results of the other accounts. Unlike the fund’s 80% investment minimum in bonds and other debt securities, which was adopted by the fund to comply with rule 35d-1 under the Investment Company Act of 1940, the other accounts have policies to invest at least 50 to 80% of their assets in such securities. However, in practice the other accounts have generally invested at least 80% of their assets in bonds and other debt securities.

These results below are not intended to predict or suggest the returns that might be experienced by the fund or an individual investing in the fund. Investors should also be aware that use of a methodology different from that used below to calculate investment results could result in different investment results data.

18 American Funds Emerging Markets Bond Fund / Prospectus






Prior Related Investment Results

Historical Returns


Year Ending
December 31 Emerging Markets Debt Composite (Net of Highest Total Annual Operating Fees and Expenses) Emerging Markets Debt Composite
(Net of Highest Management Fees) J.P. Morgan Index Blend – 50% JPM EMBI Global Diversified & 50% JPM
GBI– EM Global Diversified
2019 12.61% 13.97% 14.31%
2018 –6.08 –4.94 –5.15
2017 11.76 13.10 12.74
2016 8.01 9.32 10.45
2015 –9.12 –8.00 –7.12
2014 –0.52 0.69 –0.20
2013 –8.39 –7.26 –7.76
2012 17.74 19.15 17.74
2011 –1.52 –0.32 3.33
2010 12.20 13.56 13.91
2009 29.96 31.51 25.18
2008 –15.18 –14.13 –8.05
2007 11.43 12.77 12.10
Average annual total returns

For periods ended December 31, 2019


Emerging Markets Debt Composite (Net of Highest Total Annual Operating Fees and Expenses) Emerging Markets Debt Composite
(Net of Highest
Management Fees) J.P. Morgan Index Blend – 50% JPM EMBI Global Diversified & 50% JPM
GBI– EM Global Diversified
One year 12.61% 13.97% 14.31%
Five years* 3.02 4.27 4.63
Ten years* 3.24 4.49 4.81
Lifetime (since 2/28/2006) * 4.71 5.98 5.93
*Annualized Returns

American Funds Emerging Markets Bond Fund / Prospectus 19






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 to its investment adviser for the most recent fiscal year, as a percentage of average net assets, appears in the Annual Fund Operating Expenses table under “Fees and expenses of the fund.” 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 semi-annual report to shareholders for the fiscal period ending June 30, 2019.

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 International Investors, Capital Research Global Investors and Capital World 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 our website at capitalgroup.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.

Management of the fund The fund’s assets are managed by a team of portfolio managers. Under this approach, the fund’s managers will work together to oversee the fund’s entire portfolio. Investment decisions are subject to the 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.

Certain senior members of Capital Fixed Income Investors, the investment adviser’s fixed income investment division, serve on the Portfolio Strategy Group. The group utilizes a

20 American Funds Emerging Markets Bond Fund / Prospectus






research-driven process with input from the investment adviser’s analysts, portfolio managers and economists to define investment themes on a range of macroeconomic factors, including duration, yield curve and sector allocation. The investment decisions made by the fund’s portfolio managers are informed by the investment themes discussed by the group.

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
Robert H. Neithart Investment professional for
33 years, all with Capital Research and Management Company or affiliate 4 years Serves as a fixed income portfolio manager
Luis Freitas de Oliveira Investment professional for
32 years in total;
26 years with Capital
Research and Management
Company or affiliate 1 year Serves as a fixed income portfolio manager
Kirstie Spence Investment professional for
24 years, all with Capital Research and Management Company or affiliate 4 years 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.

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.

American Funds Emerging Markets Bond Fund / Prospectus 21






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.

22 American Funds Emerging Markets Bond Fund / Prospectus






Unless otherwise noted or unless the context requires otherwise, references on the following pages to (i) Class A, C, T or F-1 shares also refer to the corresponding Class 529-A, 529-C, 529-T or 529-F-1 shares, (ii) Class F shares refer to Class F-1, F-2 and F-3 shares and (iii) Class R shares refer to Class R-1, R-2, R-2E, R-3, R-4, R-5E, 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 or Class T 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 (or, if you are investing through a financial intermediary who offers only Class T shares, in Class T shares) of American Funds U.S. Government Money Market FundSM 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.

American Funds Emerging Markets Bond Fund / Prospectus 23






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.

Equity securities are valued primarily on the basis of market quotations, and debt securities are valued primarily on the basis of prices from third-party pricing services. Futures contracts are valued primarily on the basis of settlement prices. The fund has adopted procedures for making fair value determinations if market quotations or prices from third-party pricing services, as applicable, are not readily available or are not considered reliable. For example, if events occur between the close of markets outside the United States and the close of regular trading on the New York Stock Exchange that, in the opinion of the investment adviser, materially affect the value of any of the fund’s equity securities that trade principally in those international markets, those securities will be valued in accordance with fair value procedures. Similarly, fair value procedures may be employed if an issuer defaults on its debt securities and there is no market for its securities. Use of these procedures is intended to result in more appropriate net asset values and, where applicable, to reduce potential arbitrage opportunities otherwise available to short-term investors.

Because the fund may hold securities that are listed primarily on foreign exchanges that trade on weekends or days when the fund does not price its shares, the values of securities held in the fund may change on days when you will not be able to purchase or redeem fund shares.

Your shares will be purchased at the net asset value (plus any applicable sales charge, in the case of Class A or Class T 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 and C shares.

Purchase of Class A and C shares You may generally open an account and purchase Class A and C 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. You may purchase additional shares in various ways, including through your financial advisor and by mail, telephone, the Internet and bank wire.

Automatic conversion of Class C and Class 529-C shares Class C shares automatically convert to Class F-1 shares and Class 529-C shares automatically convert to Class 529-A shares, in each case in the month of the 10-year anniversary of the purchase date. The Internal Revenue Service currently takes the position that such 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 C shares to Class F-1 shares or your Class 529-C shares to Class 529-A shares at the anniversary date described above. This exchange would be based on the relative net

24 American Funds Emerging Markets Bond Fund / Prospectus






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 financial intermediaries that have been approved by, and that have special agreements with, the fund’s distributor to offer Class F shares to self-directed investment brokerage accounts that may charge a transaction fee, 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.

Class F-2 and F-3 shares may also be available on brokerage platforms of firms that have agreements with the fund’s distributor to offer such shares solely when acting as an agent for the investor. An investor transacting in Class F-2 or F-3 shares in these programs may be required to pay a commission and/or other forms of compensation to the broker. Shares of the fund are available in other share classes that have different fees and expenses.

In addition, upon approval by an officer of the fund’s investment adviser, Class F-3 shares are available to institutional investors, which include, but are not limited to, charitable organizations, governmental institutions and corporations. For accounts held and serviced by the fund’s transfer agent the minimum investment amount is $1 million.

Purchase of Class 529 shares Class 529 shares may be purchased only through an account established with a 529 college savings plan managed by Capital Group. 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 Capital Group. Class 529-A, 529-C, 529-T and 529-F-1 shares are structured similarly to the corresponding Class A, C, T 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 for which plan level or omnibus accounts are held on the books of the fund. Class R-5E, R-5 and R-6 shares are generally available only to fee-based programs or through retirement plan intermediaries. Class R-3 and Class R-5E shares are

American Funds Emerging Markets Bond Fund / Prospectus 25






available through the American Funds SIMPLE IRA Plus Program and other similar programs. 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. Except as otherwise provided in this prospectus, Class R shares are not available to retail nonretirement accounts; traditional and Roth individual retirement accounts (IRAs); Coverdell Education Savings Accounts; SEPs, SARSEPs and SIMPLE IRAs held in brokerage accounts; and 529 college savings plans. Class R-6 shares are available to employer-sponsored SEPs, SARSEPs and SIMPLE IRAs held in fee-based programs that are serviced through retirement plan recordkeepers.

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. These programs are proprietary recordkeeping solutions for small retirement plans.

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.

Employer-sponsored retirement plans that invested in American Funds 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 American Funds Class A shares without any initial or contingent deferred sales charge.

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

26 American Funds Emerging Markets Bond Fund / Prospectus






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-C, 529-E, 529-T and 529-F-1 shares will reflect the maximum applicable contribution limits under state law. See the applicable program description for more information.

The purchase maximum for Class C shares is $500,000 per transaction. In addition, if you have significant American Funds holdings, you may not be eligible to invest in Class C or 529-C shares. Specifically, you may not purchase Class C or 529-C shares if you are eligible to purchase Class A or 529-A shares at the $1 million or more sales charge discount rate (that is, at net asset value). See “Sales charge reductions and waivers” in this prospectus and the statement of additional information for more details regarding sales charge discounts.

American Funds Emerging Markets Bond Fund / Prospectus 27






Exchange Except for Class T shares or as otherwise described in this prospectus, you may exchange your shares for shares of the same class of other American Funds without a sales charge. Class A, C, T or F-1 shares of any American Fund (other than American Funds U.S. Government Money Market Fund, as described below) may be exchanged for the corresponding 529 share class without a sales charge. Exchanges from Class A, C, T 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.

Except as indicated above, Class T shares are not eligible for exchange privileges. Accordingly, an exchange of your Class T shares for Class T shares of any other American Fund will normally be subject to any applicable sales charges.

Exchanges of shares from American Funds U.S. Government Money Market Fund initially purchased without a sales charge to shares of another American Fund will be subject to the appropriate sales charge applicable to the other fund, unless the American Funds U.S. Government 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. For purposes of computing the contingent deferred sales charge on Class 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.

28 American Funds Emerging Markets Bond Fund / Prospectus






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.

· 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 capitalgroup.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.

The fund typically expects to remit redemption proceeds one business day following receipt and acceptance of a redemption order, regardless of the method the fund uses to make such payment (e.g., check, wire or automated clearing house transfer). However, payment may take longer than one business day and may take up to seven days as generally permitted by the Investment Company Act of 1940, as amended (“1940 Act”). Under the 1940 Act, the fund may be permitted to pay redemption proceeds beyond seven days under certain limited circumstances. In addition, if you recently purchased shares and subsequently request a redemption of those shares, the fund will pay the available redemption proceeds 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 seven business days from the purchase date).

Under normal conditions, the fund typically expects to meet shareholder redemptions by monitoring the fund’s portfolio and redemption activities and by regularly holding a reserve of highly liquid assets, such as cash or cash equivalents. The fund may use additional methods to meet shareholder redemptions, if they become necessary. These methods may include, but are not limited to, the sale of portfolio assets, the use of

American Funds Emerging Markets Bond Fund / Prospectus 29






overdraft protection afforded by the fund’s custodian bank, borrowing from a line of credit or from other funds advised by the investment adviser or its affiliates, and making payment with fund securities or other fund assets rather than in cash (as further discussed in the following paragraph).

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. On the same redemption date, some shareholders may be paid in whole or in part in securities (which may differ among those shareholders), while other shareholders may be paid entirely in cash. In general, in-kind redemptions to affiliated shareholders will as closely as practicable represent the affiliated shareholder’s pro rata share of the fund’s securities, subject to certain exceptions. Securities distributed in-kind to unaffiliated shareholders will be selected by the investment adviser in a manner the investment adviser deems to be fair and reasonable to the fund’s shareholders. The disposal of the securities received in-kind may be subject to brokerage costs and, until sold, such securities remain subject to market risk and liquidity risk, including the risk that such securities are or become difficult to sell. If the fund pays your redemption with illiquid or less liquid securities, you will bear the risk of not being able to sell such securities.

30 American Funds Emerging Markets Bond Fund / Prospectus






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.

Under the fund’s frequent trading policy, certain trading activity will not be treated as frequent trading, such as:

· transactions in Class 529 shares;

· 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, if the entity maintaining the

American Funds Emerging Markets Bond Fund / Prospectus 31






shareholder account is able to identify the transaction as one of these types of transactions; and

· systematic redemptions and purchases, if 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.

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 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. See the statement of additional information for more information about how American Funds Service Company may address other potentially abusive trading activity in American Funds.

32 American Funds Emerging Markets Bond Fund / Prospectus






Distributions and taxes

Dividends and distributions The fund intends to declare daily dividends from net investment income and distribute 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. Since the fund’s distribution of net investment income may exceed its earnings and profits for tax purposes, a portion of the distribution may be classified as a return of capital.

Capital gains, if any, are usually distributed in December and June. When a dividend or 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. If you are an individual and meet certain holding period requirements with respect to your fund shares, you may be eligible for reduced tax rates on “qualified dividend income,” if any, distributed by the fund to you. The fund’s distributions of net long-term capital gains are taxable as long-term capital gains. Returns of capital distributions decrease your cost basis and are not taxable until your cost basis has been reduced to zero. If your cost base is zero, return of capital distributions are treated as 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.

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.

American Funds Emerging Markets Bond Fund / Prospectus 33






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. For example, while Class F-1 shares are subject to 12b-1 fees and subtransfer agency fees payable to third-party service providers, Class F-2 shares are subject only to subtransfer agency fees payable to third-party service providers (and not 12b-1 fees) and Class F-3 shares are not subject to any such additional fees. The different fee structures allow the investor to choose how to pay for advisory platform expenses. Class R shares offer different levels of 12b-1 and recordkeeping fees so that a plan can choose the class that best meets the cost associated with obtaining investment related services and participant level recordkeeping for the plan. 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 (or, if you are investing through a financial intermediary who offers only Class T and 529-T shares, your investment will be made in Class T or Class 529-T shares, as applicable).

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 or Class T or 529-T shares may be a less expensive option over time, particularly if you qualify for a sales charge reduction or waiver);

· whether you want or need the flexibility to effect exchanges among American Funds without the imposition of a sales charge (for example, while Class A shares offer such exchange privileges, Class T shares do not);

· 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-C shares to cover higher education expenses); and

· availability of share classes:

— 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 available (i) to fee-based programs of investment dealers that have special agreements with the fund’s distributor, (ii) to financial intermediaries that have been approved by, and that have special agreements with, the fund’s distributor to offer Class F and 529-F-1 shares to self-directed investment brokerage accounts that may charge a transaction fee, (iii) to certain registered investment advisors and (iv) to other intermediaries approved by the fund’s distributor;

— Class F-3 shares are also available to institutional investors, which include, but are not limited to, charitable organizations, governmental institutions and

34 American Funds Emerging Markets Bond Fund / Prospectus






corporations. For accounts held and serviced by the fund’s transfer agent the minimum investment amount is $1 million; and

— Class R shares are available (i) to retirement plans established under Internal Revenue Code Sections 401(a) (including 401(k) plans), 403(b) or 457, (ii) to nonqualified deferred compensation plans and certain voluntary employee benefit association and post-retirement benefit plans, (iii) to certain institutional investors (including, but not limited to, certain charitable organizations), (iv) to certain registered investment companies approved by the fund’s investment adviser or distributor and (v) to other institutional-type accounts.

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.

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 $100,000 3.75% 3.90% 3.00%
$100,000 but less than $250,000 3.50 3.63 2.75
$250,000 but 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 will be subject to a 1% contingent deferred sales charge if the shares are sold within 18 months 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 shares purchased before August 14, 2017 are subject to a contingent deferred sales charge period of 12 months.

American Funds Emerging Markets Bond Fund / Prospectus 35






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

· rollover investments from retirement plans to IRAs that are described in the “Rollovers from retirement plans to IRAs” section of this prospectus; and

· investments made by accounts held at American Funds Service Company that are no longer associated with a financial advisor may invest in Class A shares without a sales charge. This includes retirement plans investing in Class A shares, where the plan is no longer associated with a financial advisor. SIMPLE IRAs and 403(b) custodial accounts that are aggregated at the plan level for Class A sales charge purposes are not eligible to invest without a sales charge under this policy.

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).

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. Investment dealers will be compensated solely with an annual service fee that begins to accrue immediately.

If requested, American Funds Class A shares will be sold at net asset value to:

(1) 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 American Funds Distributors (or who clear transactions through such dealers), plans for the dealers, and plans that include as participants only the Eligible Persons, their spouses, parents and/or children;

(2) the supervised persons of currently registered investment advisory firms (“RIAs”) and assistants directly employed by such RIAs, retired supervised persons of RIAs with respect to accounts established while a supervised person (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 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 Persons, their spouses, parents and/or children;

36 American Funds Emerging Markets Bond Fund / Prospectus






(3) insurance company separate accounts;

(4) accounts managed by subsidiaries of The Capital Group Companies, Inc.;

(5) 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;

(6) 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.;

(7) full-time employees of banks that have sales agreements with American Funds Distributors who are solely dedicated to directly supporting the sale of mutual funds; and

(8) current or former clients of Capital Group Private Client Services and their family members who purchase their shares through Capital Group Private Client Services or American Funds Service Company.

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. Depending on the financial intermediary holding your account, these privileges may be unavailable. Investors should consult their financial intermediary for further information.

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

Class C shares Class C shares are sold without any initial sales charge. American Funds Distributors pays 1% of the amount invested to dealers who sell Class C shares. A contingent deferred sales charge of 1% applies if Class C 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 C shares, expressed as a percentage of the applicable redemption amount, may be higher or lower than the percentages described above due to rounding.

American Funds Emerging Markets Bond Fund / Prospectus 37






Class T shares The initial sales charge you pay each time you buy Class T shares differs depending upon the amount you invest and may be reduced 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
Less than $250,000 2.50% 2.56%
$250,000 but less than $500,000 2.00 2.04
$500,000 but less than $1 million 1.50 1.52
$1 million or more 1.00 1.01
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.

Class 529-E and Class F shares Class 529-E and Class F shares (including Class 529-F-1 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-5E, 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 “Sales charge reductions and waivers” section of this prospectus. 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.

38 American Funds Emerging Markets Bond Fund / Prospectus






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 American Funds. You may need to invest directly through American Funds Service Company in order to receive the sales charge waivers described in this prospectus. Investors should consult their financial intermediary for further information. Certain financial intermediaries that distribute shares of American Funds may impose different sales charge waivers than those described in this prospectus. Such variations in sales charge waivers are described in an appendix to this prospectus titled “Sales charge waivers.” Note that such sales charge waivers and discounts offered through a particular intermediary, as set forth in the appendix to this prospectus, are implemented and administered solely by that intermediary. Please contact the applicable intermediary to ensure that you understand the steps you must take in order to qualify for any available waivers or discounts.

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 our website at capitalgroup.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, your children under the age of 21 or disabled adult dependents covered by ABLE accounts) 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. However, for this purpose, investments representing direct purchases of American Funds U.S. Government Money Market Fund Class A shares 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:

· 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 “Rollovers from retirement plans to IRAs” below);

· 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;

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

American Funds Emerging Markets Bond Fund / Prospectus 39






· 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 “Rollovers from retirement plans to IRAs” below), 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.

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.

Joint accounts may be aggregated with other accounts belonging to the primary owner and/or his or her immediate family. The primary owner of a joint account is the individual responsible for taxes on the account.

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

Concurrent purchases You may reduce your Class A sales charge by combining simultaneous purchases (including, upon your request, purchases for gifts) of all classes of shares in American Funds. Shares of American Funds U.S. Government Money Market Fund purchased through an exchange, reinvestment or cross-

40 American Funds Emerging Markets Bond Fund / Prospectus






reinvestment from a fund having a sales charge also qualify. However, direct purchases of American Funds U.S. Government Money Market Fund Class A shares 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 American Funds to determine your sales charge on investments in accounts eligible to be aggregated. Direct purchases of American Funds U.S. Government Money Market Fund Class A shares 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.

You should retain any records necessary to substantiate the historical amounts you have invested.

Statement of intention You may reduce your Class A sales charge by establishing a statement of intention. A statement of intention is a nonbinding commitment that allows you to combine all purchases of all American Funds share classes (excluding

American Funds Emerging Markets Bond Fund / Prospectus 41






American Funds U.S. Government 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 are 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.

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

You may revise the commitment you have made in your statement of intention upward at any time during the statement of intention period. If your prior commitment has not been met by the time of the revision, the statement of intention 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 of intention. If your prior commitment has been met by the time of the revision, your original statement of intention will be considered met and a new statement of intention will be established.

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

When a shareholder elects to use a statement of intention, shares equal to 5% of the dollar amount specified in the statement of intention may be held in escrow in the shareholder’s account out of the initial purchase (or subsequent purchases, if necessary) by American Funds Service Company. 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 of intention 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 of intention.

42 American Funds Emerging Markets Bond Fund / Prospectus






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

Reducing your Class T initial sales charge Consistent with the policies described in this prospectus, the initial sales charge you pay each time you buy Class T shares may differ depending upon the amount you invest and may be reduced for larger purchases. Additionally, Class T shares acquired through reinvestment of dividends or capital gain distributions are not subject to an initial sales charge. Sales charges on Class T shares are applied on a transaction-by-transaction basis, and, accordingly, Class T shares are not eligible for any other sales charge waivers or reductions, including through the aggregation of Class T shares concurrently purchased by other related accounts or in other American Funds. The sales charge applicable to Class T shares may not be reduced by establishing a statement of intention, and rights of accumulation are not available for Class T shares.

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 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 U.S. Government 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 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. Depending on the financial intermediary holding your account, your reinvestment privileges may be unavailable or differ from those described in this prospectus. Investors should consult their financial intermediary for further information.

American Funds Emerging Markets Bond Fund / Prospectus 43






Contingent deferred sales charge waivers The contingent deferred sales charge on Class A and C shares will 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);

· in the case of joint tenant accounts, if one joint tenant dies, a surviving joint tenant, at the time he or she notifies American Funds Service Company 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 contingent deferred sales charge; however, redemptions made after American Funds Service Company is notified of the death of a joint tenant will be subject to a contingent deferred sales charge;

· 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 they do not exceed 12% of the value of an account annually:

— required minimum distributions taken from retirement accounts in accordance with IRS regulations; and

— redemptions through an automatic withdrawal plan (“AWP”) (see “Automatic withdrawals” under “Shareholder account services and privileges” in the statement of additional information). For each AWP payment, assets that are not subject to a contingent deferred sales charge, 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 contingent deferred sales charge to cover a particular AWP payment, shares subject to the lowest contingent deferred sales charge 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 contingent deferred sales charge 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.

The contingent deferred sales charge on American Funds Class A shares may be waived in cases where the fund’s transfer agent determines the benefit to the fund of collecting the contingent deferred sales charge would be outweighed by the cost of applying it.

44 American Funds Emerging Markets Bond Fund / Prospectus






Contingent deferred sales charge waivers are allowed only in the cases listed here and in the statement of additional information. For example, contingent deferred sales charge waivers will not be allowed on redemptions of Class 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 Virginia529 as an option for additional investment within CollegeAmerica.

To have your Class A 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.

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 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 CompanySM IRAs if the assets were invested in any fund managed by the investment adviser or its affiliates 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 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.

Other sales charge waivers Waivers of all or a portion of the contingent deferred sales charge on Class C and 529-C shares and the sales charge on Class A and 529-A shares will be granted for transactions requested by financial intermediaries as a result of (i) pending or anticipated regulatory matters that require investor accounts to be moved to a different share class or (ii) conversions of IRAs from brokerage to advisory accounts investing in Class F shares in cases where new investments in brokerage IRA accounts have been restricted by the intermediary.

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) will be aggregated at the plan level for Class A sales charge purposes if an employer adopts a prototype plan produced by American Funds Distributors or (a) the employer or plan sponsor submits all contributions for all participating employees in a single contribution transmittal or the contributions are identified as related to the same plan; (b) each transmittal is accompanied by checks or

American Funds Emerging Markets Bond Fund / Prospectus 45






wire transfers and generally must be submitted through the transfer agent’s automated contribution system if held on the fund’s books; and (c) if the fund is expected to carry separate accounts in the name of each plan participant and (i) the employer or plan sponsor notifies the funds’ transfer agent or the intermediary holding the account that the separate accounts of all plan participants should be linked and (ii) all new participant accounts are established by submitting the appropriate documentation on behalf of each new participant. Participant accounts in a SEP or SIMPLE plan that are eligible to aggregate their assets at the plan level may not also aggregate the assets with their individual accounts.

Purchases by certain 403(b) plans A 403(b) plan may not invest in American Funds 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 invested in American Funds Class A or C shares and 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 invested in American Funds Class A or C shares and 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 was established on or after January 1, 2009, are treated as accounts of an employer-sponsored plan for sales charge purposes.

Moving between accounts American Funds investments by certain account types may be moved to other account types without incurring additional Class A sales charges. These transactions include:

· 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

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

These privileges are generally available only if your account is held directly with the fund’s transfer agent or if the financial intermediary holding your account has the systems, policies and procedures to support providing the privileges on its systems. Investors should consult their financial intermediary for further information.

46 American Funds Emerging Markets Bond Fund / Prospectus






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 T, F-1, 529-A, 529-T, 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 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 most recent fiscal year, are indicated in the Annual Fund Operating Expenses table under “Fees and expenses of the fund” in this prospectus. Since these fees are paid out of the fund’s assets 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 C shares may cost you more over time than paying the initial sales charge for Class A or T shares.

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 no more than the top 60 dealers (or their affiliates) with which it has a substantive distribution relationship involving the sale of American Funds. The amount will be determined using a formula applied consistently to dealers based on their assets under management. The level of payments made to a qualifying firm under the formula will not exceed .035% of eligible American Funds assets attributable to that dealer. Eligible assets are all American Funds assets other than Class R shares, Class F-3 shares, Class F shares held in IRAs and shares held in certain retirement accounts. Dealers may direct American Funds Distributors to exclude additional assets. In addition to the asset-based payment, American Funds Distributors provides $5 million to certain firms based on their engagement with American Funds Distributors and the level of American Funds assets under management at each such firm to recognize the commitment each of those firms has made to collaborating with American Funds Distributors on achieving advisor training and education objectives.

In 2019, American Funds Distributors paid this amount to the following firms:


Edward Jones Morgan Stanley Wealth Management
LPL Financial LLC Raymond James Group
Merrill Lynch, Pierce, Fenner & Smith Wells Fargo Advisors
American Funds Distributors compensates the firms to support various efforts, including, among other things, to:

· help defray the costs incurred by qualifying dealers in connection with efforts to educate financial advisors about American Funds so that they can make recommendations and provide services that are suitable and meet shareholder needs;

American Funds Emerging Markets Bond Fund / Prospectus 47






· help defray the costs associated with the dealer firms’ provision of account related services and activities and support the dealer firms’ distribution activities; and

· support meetings, conferences or other training and educational events hosted by the firm, and obtain relevant data regarding financial advisor activities to facilitate American Funds Distributors’ training and education activities.

American Funds Distributors will, on an annual basis, determine the advisability of continuing these payments. Firms receiving additional compensation payments must sign a letter acknowledging the purpose of the payment and generally requiring the firms to (1) perform the due diligence necessary to include American Funds on their platform, (2) not provide financial advisors, branch managers or associated persons with any financial incentives to promote the sales of one approved fund group over another approved group, (3) provide opportunities for their clients to obtain individualized advice, (4) provide American Funds Distributors broad access to their financial advisors and product platforms and work together on mutual business objectives, and (5) work with the fund’s transfer agent to promote operational efficiencies and to facilitate necessary communication between American Funds and the firm’s clients who own shares of American Funds.

Separately, American Funds Distributors has identified certain firms that provide a self-directed platform for the public as well as clearing, custody and recordkeeping services for certain other intermediaries. In lieu of the formula described above, these firms receive up to .018% of assets under administration (excluding assets where the firm acts as a fiduciary and Class R shares). Firms may direct American Funds Distributors to exclude additional assets.

In addition to compensation through the formulas described above, American Funds Distributors provides compensation for, among other things, data (including fees to obtain information on financial advisors to better tailor training and education opportunities), account-related services, and operational improvements. American Funds Distributors estimates that in 2019 for the firms listed below, the compensation for such information and services was approximately:


Charles Schwab & Co. Inc. $3,600,000
Commonwealth Financial Network $50,000
Fidelity Investments $3,200,000
LPL Financial LLC $1,100,000
Morgan Stanley Wealth Management $3,600,000
Northwestern Mutual Investment Services LLC $75,000
PNC Network $50,000
UBS Financial Services Inc. $300,000
Wells Fargo Advisors $450,000
American Funds Distributors also pays expenses associated with meetings and other training and educational opportunities conducted by selling dealers, advisory platform providers and other intermediaries to facilitate educating financial advisors and shareholders about American Funds.

American Funds Distributors pays the recordkeepers listed below up to $1 million annually for product services, platform consideration, participation at recordkeeper-

48 American Funds Emerging Markets Bond Fund / Prospectus






sponsored events and co-branding and other marketing services. The amount of the payment is based on the level of services and the access provided by the recordkeeper.


Empower (Great West Life & Annuity Insurance Company) John Hancock
If investment advisers, distributors or other affiliates of mutual funds pay additional compensation or other incentives to investment dealers in differing amounts, dealer firms and their advisors may have financial incentives for recommending a particular mutual fund over other mutual funds or investments, creating a potential conflict of interest. You should consult with your financial advisor and review carefully any disclosure by your financial advisor’s firm as to compensation received.

Fund expenses Note that, unless otherwise stated, references to Class A, C, T 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 under “Fees and expenses of the fund” in this prospectus.

For all share classes, “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 are provided by the investment adviser and its affiliates to help assist third parties providing non-distribution services to fund shareholders. These services include providing in-depth information on the fund and market developments that impact fund investments. Administrative services also include, but are not limited to, coordinating, monitoring and overseeing third parties that provide services to fund shareholders. The Administrative Services Agreement between the fund and the investment adviser provides the fund the ability to charge an administrative services fee of .05% for all share classes. The fund’s investment adviser receives an administrative services fee at the annual rate of .03% of the average daily net assets of the fund attributable to Class A, C, T, F, R and 529 shares (which could be increased as noted above) for its provision of administrative services.

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

American Funds Emerging Markets Bond Fund / Prospectus 49






Subtransfer agency and recordkeeping fees 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 $18 per account. Although Class F-3 shares are not subject to any subtransfer agency or recordkeeping fees, Class F-1 and F-2 shares are subject to subtransfer agency fees of up to .12% of fund assets.

For employer-sponsored retirement plans, the amount paid for subtransfer agent/ recordkeeping services varies depending on the share class selected. The table below shows the maximum payments to entities providing these services to retirement plans.


Payments
Class A 0.05% of assets or
$12 per participant position*
Class R-1 0.10% of assets
Class R-2 0.35% of assets
Class R-2E 0.20% of assets
Class R-3 0.15% of assets
Class R-4 0.10% of assets
Class R-5E 0.15% of assets
Class R-5 0.05% of assets
Class R-6 none
* Payment amount depends on the date services commenced.

Fee to Virginia529 For Class 529 shares, an expense of up to a maximum of .09% paid to a state or states for oversight and administrative services is included as an “Other expenses” item.

50 American Funds Emerging Markets Bond Fund / Prospectus






Financial highlights The Financial Highlights table is intended to help you understand the fund’s results for the last three fiscal years and for the fiscal period ended December 31, 2016. 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 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.


Income (loss) from
investment operations1 Dividends, distributions and return of capital
Period ended 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) Distributions
(from capital
gains) Return of
capital Total
dividends,
distributions
and return
of capital Net asset
value,
end
of period Total
return2, 3 Net assets,
end of period
(in millions) Ratio of
expenses to
average net
assets before
reimburse-
ments/
waivers4 Ratio of
expenses to
average net
assets after
reimburse-
ments/
waivers3, 4 Ratio of
net income
to average
net assets3
Class A:
12/31/2019 $9.35 $.63 $.62 $1.25 $(.36 ) $(.03 ) $(.27 ) $(.66 ) $9.94 13.69 % $387 1.03 % 1.00 % 6.44 %
12/31/2018 10.38 .61 (1.04 ) (.43 ) (.58 ) — 5 (.02 ) (.60 ) 9.35 (4.23 ) 285 1.06 1.01 6.23
12/31/2017 9.77 .62 .62 1.24 (.61 ) (.02 ) — (.63 ) 10.38 12.93 203 1.25 1.01 6.00
12/31/20166, 7 10.00 .40 (.24 ) .16 (.37 ) — (.02 ) (.39 ) 9.77 1.58 8, 9 58 1.00 9, 10 .93 9, 10 5.74 9, 10
Class C:
12/31/2019 9.35 .56 .62 1.18 (.32 ) (.03 ) (.24 ) (.59 ) 9.94 12.82 28 1.79 1.77 5.67
12/31/2018 10.38 .53 (1.04 ) (.51 ) (.50 ) — 5 (.02 ) (.52 ) 9.35 (4.98 ) 18 1.85 1.80 5.43
12/31/2017 9.77 .54 .62 1.16 (.53 ) (.02 ) — (.55 ) 10.38 12.08 13 2.04 1.78 5.19
12/31/20166, 11 10.19 .22 (.43 ) (.21 ) (.20 ) — (.01 ) (.21 ) 9.77 (2.09 )8 1 .80 8 .73 8 2.26 8
Class T:
12/31/2019 9.35 .65 .62 1.27 (.37 ) (.03 ) (.28 ) (.68 ) 9.94 13.96 9 — 12 .80 9 .78 9 6.67 9
12/31/2018 10.38 .63 (1.04 ) (.41 ) (.60 ) — 5 (.02 ) (.62 ) 9.35 (4.02 )9 — 12 .86 9 .81 9 6.45 9
12/31/20176, 13 10.22 .47 .18 .65 (.47 ) (.02 ) — (.49 ) 10.38 6.45 8, 9 — 12 1.04 9, 10 .79 9, 10 6.20 9, 10

American Funds Emerging Markets Bond Fund / Prospectus 51








Income (loss) from
investment operations1 Dividends, distributions and return of capital
Period ended 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) Distributions
(from capital
gains) Return of
capital Total
dividends,
distributions
and return
of capital Net asset
value,
end
of period Total
return2, 3 Net assets,
end of period
(in millions) Ratio of
expenses to
average net
assets before
reimburse-
ments/
waivers4 Ratio of
expenses to
average net
assets after
reimburse-
ments/
waivers3, 4 Ratio of
net income
to average
net assets3
Class F-1:
12/31/2019 $9.35 $.63 $.62 $1.25 $(.36 ) $(.03 ) $(.27 ) $(.66 ) $9.94 13.64 % $13 1.07 % 1.04 % 6.41 %
12/31/2018 10.38 .60 (1.04 ) (.44 ) (.57 ) — 5 (.02 ) (.59 ) 9.35 (4.29 ) 10 1.13 1.10 5.99
12/31/2017 9.77 .62 .62 1.24 (.61 ) (.02 ) — (.63 ) 10.38 12.87 20 1.35 1.05 5.98
12/31/20166, 11 10.19 .25 (.44 ) (.19 ) (.22 ) — (.01 ) (.23 ) 9.77 (1.86 )8 1 .55 8 .46 8 2.54 8
Class F-2:
12/31/2019 9.35 .65 .62 1.27 (.37 ) (.03 ) (.28 ) (.68 ) 9.94 13.94 214 .80 .78 6.67
12/31/2018 10.38 .63 (1.04 ) (.41 ) (.60 ) — 5 (.02 ) (.62 ) 9.35 (4.01 ) 164 .83 .78 6.48
12/31/2017 9.77 .64 .62 1.26 (.63 ) (.02 ) — (.65 ) 10.38 13.14 67 1.04 .79 6.20
12/31/20166, 11 10.19 .25 (.43 ) (.18 ) (.23 ) — (.01 ) (.24 ) 9.77 (1.81 )8 8 .58 8 .42 8 2.54 8
Class F-3:
12/31/2019 9.35 .66 .62 1.28 (.38 ) (.03 ) (.28 ) (.69 ) 9.94 14.05 112 .74 .67 6.76
12/31/2018 10.38 .63 (1.04 ) (.41 ) (.60 ) — 5 (.02 ) (.62 ) 9.35 (4.00 ) 47 .82 .75 6.53
12/31/20176, 14 9.91 .60 .48 1.08 (.59 ) (.02 ) — (.61 ) 10.38 11.13 8 23 1.08 10 .80 10 6.19 10
Class 529-A:
12/31/2019 9.35 .63 .62 1.25 (.36 ) (.03 ) (.27 ) (.66 ) 9.94 13.63 8 1.08 1.05 6.39
12/31/2018 10.38 .60 (1.04 ) (.44 ) (.57 ) — 5 (.02 ) (.59 ) 9.35 (4.28 ) 6 1.11 1.06 6.19
12/31/2017 9.77 .61 .62 1.23 (.60 ) (.02 ) — (.62 ) 10.38 12.79 4 1.39 1.15 5.87
12/31/20166, 11 10.19 .25 (.44 ) (.19 ) (.22 ) — (.01 ) (.23 ) 9.77 (1.88 )8 1 .56 8 .49 8 2.52 8
Class 529-C:
12/31/2019 9.35 .55 .62 1.17 (.31 ) (.03 ) (.24 ) (.58 ) 9.94 12.79 1 1.82 1.80 5.65
12/31/2018 10.38 .53 (1.04 ) (.51 ) (.50 ) — 5 (.02 ) (.52 ) 9.35 (5.01 ) 1 1.87 1.82 5.42
12/31/2017 9.77 .54 .62 1.16 (.53 ) (.02 ) — (.55 ) 10.38 12.06 9 1 2.03 9 1.80 9 5.21 9
12/31/20166, 11 10.19 .23 (.43 ) (.20 ) (.21 ) — (.01 ) (.22 ) 9.77 (1.99 )8, 9 — 12 .72 8, 9 .64 8, 9 2.31 8, 9
Class 529-E:
12/31/2019 9.35 .60 .62 1.22 (.34 ) (.03 ) (.26 ) (.63 ) 9.94 13.40 1 1.28 1.26 6.18
12/31/2018 10.38 .58 (1.04 ) (.46 ) (.55 ) — 5 (.02 ) (.57 ) 9.35 (4.49 ) 1 1.33 1.26 6.12
12/31/2017 9.77 .60 .62 1.22 (.59 ) (.02 ) — (.61 ) 10.38 12.71 — 12 1.47 1.24 5.76
12/31/20166, 11 10.19 .24 (.43 ) (.19 ) (.22 ) — (.01 ) (.23 ) 9.77 (1.89 )8, 9 — 12 .55 8, 9 .49 8, 9 2.40 8, 9

52 American Funds Emerging Markets Bond Fund / Prospectus








Income (loss) from
investment operations1 Dividends, distributions and return of capital
Period ended 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) Distributions
(from capital
gains) Return of
capital Total
dividends,
distributions
and return
of capital Net asset
value,
end
of period Total
return2, 3 Net assets,
end of period
(in millions) Ratio of
expenses to
average net
assets before
reimburse-
ments/
waivers4 Ratio of
expenses to
average net
assets after
reimburse-
ments/
waivers3, 4 Ratio of
net income
to average
net assets3
Class 529-T:
12/31/2019 $9.35 $.65 $.62 $1.27 $(.37 ) $(.03 ) $(.28 ) $(.68 ) $9.94 13.87 %9 $— 12 .85 %9 .83 %9 6.61 %9
12/31/2018 10.38 .62 (1.04 ) (.42 ) (.59 ) — 5 (.02 ) (.61 ) 9.35 (4.08 )9 — 12 .92 9 .87 9 6.36 9
12/31/20176, 13 10.22 .47 .18 .65 (.47 ) (.02 ) — (.49 ) 10.38 6.40 8, 9 — 12 1.10 9, 10 .85 9, 10 6.14 9, 10
Class 529-F-1:
12/31/2019 9.35 .65 .62 1.27 (.37 ) (.03 ) (.28 ) (.68 ) 9.94 13.88 4 .84 .82 6.60
12/31/2018 10.38 .62 (1.04 ) (.42 ) (.59 ) — 5 (.02 ) (.61 ) 9.35 (4.08 ) 1 .90 .84 6.51
12/31/2017 9.77 .63 .63 1.26 (.63 ) (.02 ) — (.65 ) 10.38 13.12 1 1.08 .85 6.11
12/31/20166, 11 10.19 .25 (.43 ) (.18 ) (.23 ) — (.01 ) (.24 ) 9.77 (1.78 )8 — 12 .47 8 .37 8 2.55 8
Class R-1:
12/31/2019 9.35 .58 .62 1.20 (.33 ) (.03 ) (.25 ) (.61 ) 9.94 13.11 9 — 12 1.56 9 1.52 9 5.94 9
12/31/2018 10.38 .56 (1.04 ) (.48 ) (.53 ) — 5 (.02 ) (.55 ) 9.35 (4.76 )9 — 12 1.64 9 1.57 9 5.63 9
12/31/2017 9.77 .57 .62 1.19 (.56 ) (.02 ) — (.58 ) 10.38 12.37 9 — 12 1.73 9 1.52 9 5.51 9
12/31/20166, 11 10.19 .25 (.43 ) (.18 ) (.23 ) — (.01 ) (.24 ) 9.77 (1.77 )8, 9 — 12 .40 8, 9 .36 8, 9 2.49 8, 9
Class R-2:
12/31/2019 9.35 .56 .62 1.18 (.32 ) (.03 ) (.24 ) (.59 ) 9.94 12.90 1 1.73 1.70 5.74
12/31/2018 10.38 .55 (1.04 ) (.49 ) (.52 ) — 5 (.02 ) (.54 ) 9.35 (4.84 ) 1 1.70 1.64 5.67
12/31/2017 9.77 .57 .62 1.19 (.56 ) (.02 ) — (.58 ) 10.38 12.39 9 — 12 1.71 9 1.50 9 5.52 9
12/31/20166, 11 10.19 .23 (.43 ) (.20 ) (.21 ) — (.01 ) (.22 ) 9.77 (1.99 )8, 9 — 12 .68 8, 9 .62 8, 9 2.34 8, 9
Class R-2E:
12/31/2019 9.35 .58 .62 1.20 (.33 ) (.03 ) (.25 ) (.61 ) 9.94 13.20 1 1.46 1.43 6.02
12/31/2018 10.38 .58 (1.04 ) (.46 ) (.55 ) — 5 (.02 ) (.57 ) 9.35 (4.51 ) 1 1.48 1.42 5.89
12/31/2017 9.77 .65 .62 1.27 (.64 ) (.02 ) — (.66 ) 10.38 13.29 9 — 12 1.01 9 .70 9 6.33 9
12/31/20166, 11 10.19 .25 (.43 ) (.18 ) (.23 ) — (.01 ) (.24 ) 9.77 (1.77 )8, 9 — 12 .39 8, 9 .35 8, 9 2.46 8, 9
Class R-3:
12/31/2019 9.35 .60 .62 1.22 (.34 ) (.03 ) (.26 ) (.63 ) 9.94 13.37 2 1.30 1.28 6.15
12/31/2018 10.38 .58 (1.04 ) (.46 ) (.55 ) — 5 (.02 ) (.57 ) 9.35 (4.52 ) 1 1.36 1.31 5.91
12/31/2017 9.77 .59 .63 1.22 (.59 ) (.02 ) — (.61 ) 10.38 12.70 1 1.52 1.27 5.73
12/31/20166, 11 10.19 .25 (.43 ) (.18 ) (.23 ) — (.01 ) (.24 ) 9.77 (1.81 )8, 9 — 12 .46 8, 9 .41 8, 9 2.47 8, 9

American Funds Emerging Markets Bond Fund / Prospectus 53








Income (loss) from
investment operations1 Dividends, distributions and return of capital
Period ended 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) Distributions
(from capital
gains) Return of
capital Total
dividends,
distributions
and return
of capital Net asset
value,
end
of period Total
return2, 3 Net assets,
end of period
(in millions) Ratio of
expenses to
average net
assets before
reimburse-
ments/
waivers4 Ratio of
expenses to
average net
assets after
reimburse-
ments/
waivers3, 4 Ratio of
net income
to average
net assets3
Class R-4:
12/31/2019 $9.35 $.63 $.62 $1.25 $(.36 ) $(.03 ) $(.27 ) $(.66 ) $9.94 13.67 % $1 1.04 % 1.02 % 6.44 %
12/31/2018 10.38 .61 (1.04 ) (.43 ) (.58 ) — 5 (.02 ) (.60 ) 9.35 (4.26 ) 1 1.09 1.03 6.24
12/31/2017 9.77 .63 .62 1.25 (.62 ) (.02 ) — (.64 ) 10.38 13.03 — 12 1.22 .96 6.03
12/31/20166, 11 10.19 .25 (.43 ) (.18 ) (.23 ) — (.01 ) (.24 ) 9.77 (1.76 )8, 9 — 12 .39 8, 9 .35 8, 9 2.46 8, 9
Class R-5E:
12/31/2019 9.35 .65 .62 1.27 (.37 ) (.03 ) (.28 ) (.68 ) 9.94 14.05 — 12 .77 .75 6.81
12/31/2018 10.38 .63 (1.04 ) (.41 ) (.60 ) — 5 (.02 ) (.62 ) 9.35 (4.03 ) — 12 .86 .76 6.90
12/31/2017 9.77 .65 .62 1.27 (.64 ) (.02 ) — (.66 ) 10.38 13.29 — 12 .99 .69 6.33
12/31/20166, 11 10.19 .25 (.43 ) (.18 ) (.23 ) — (.01 ) (.24 ) 9.77 (1.76 )8 — 12 .39 8 .35 8 2.46 8
Class R-5:
12/31/2019 9.35 .66 .62 1.28 (.38 ) (.03 ) (.28 ) (.69 ) 9.94 14.01 1 .74 .71 6.73
12/31/2018 10.38 .63 (1.04 ) (.41 ) (.60 ) — 5 (.02 ) (.62 ) 9.35 (3.98 ) — 12 .80 .74 6.54
12/31/2017 9.77 .65 .62 1.27 (.64 ) (.02 ) — (.66 ) 10.38 13.23 — 12 1.00 .74 6.27
12/31/20166, 11 10.19 .25 (.43 ) (.18 ) (.23 ) — (.01 ) (.24 ) 9.77 (1.76 )8 — 12 .38 8 .34 8 2.47 8
Class R-6:
12/31/2019 9.35 .66 .62 1.28 (.38 ) (.03 ) (.28 ) (.69 ) 9.94 14.07 173 .68 .66 6.80
12/31/2018 10.38 .64 (1.04 ) (.40 ) (.61 ) — 5 (.02 ) (.63 ) 9.35 (3.95 ) 157 .72 .66 6.69
12/31/2017 9.77 .64 .62 1.26 (.63 ) (.02 ) — (.65 ) 10.38 13.17 — 12 1.00 .79 6.20
12/31/20166, 11 10.19 .25 (.43 ) (.18 ) (.23 ) — (.01 ) (.24 ) 9.77 (1.78 )8 — 12 .41 8 .37 8 2.48 8

54 American Funds Emerging Markets Bond Fund / Prospectus








Year ended December 31, For the period
2019 2018 2017 4/22/2016 to 12/31/20166,7,8
Portfolio turnover rate for all share classes15 54% 38% 35% 43%
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 Capital Research and Management Company and/or the fund’s transfer agent. During the periods shown, Capital Research and Management Company reimbursed a portion of other fees and expenses . In addition, during some of the years shown, the fund’s transfer agent waived a portion of the fund's transfer agent services fees for Class F-3 shares.

4 Ratios do not include expenses of any Central Funds. The fund indirectly bears its proportionate share of the expenses of any Central Funds.

5 Amount less than $.01.

6 Based on operations for a period that is less than a full year.

7 For the period April 22, 2016, commencement of operations, through December 31, 2016.

8 Not annualized.

9 All or a significant portion of assets in this class consisted of seed capital invested by Capital Research and Management Company and/or its affiliates. Fees for distribution services are not charged or accrued on these seed capital assets. If such fees were paid by the fund on seed capital assets, fund expenses would have been higher and net income and total return would have been lower.

10 Annualized.

11 This share class began investment operations on July 29, 2016.

12 Amount less than $1 million.

13 Class T and 529-T shares began investment operations on April 7, 2017.

14 Class F-3 shares began investment operations on January 27, 2017.

15 Rates do not include the fund’s portfolio activity with respect to any Central Funds.


American Funds Emerging Markets Bond Fund / Prospectus 55









Appendix

Sales charge waivers

The availability of certain sales charge waivers and discounts will depend on whether you purchase your shares directly from the fund or through a financial intermediary. Intermediaries may have different policies and procedures regarding the availability of front-end sales charge waivers or contingent deferred (back-end) sales charge (“CDSC”) waivers, which are discussed below. In all instances, it is the purchaser’s responsibility to notify the fund or the purchaser’s financial intermediary at the time of purchase of any relationship or other facts qualifying the purchaser for sales charge waivers or discounts. Please contact the applicable intermediary with any questions regarding how the intermediary applies the policies described below and to ensure that you understand what steps you must take to qualify for any available waivers or discounts. For waivers and discounts not available through a particular intermediary, shareholders will have to purchase fund shares directly from the fund or through another intermediary to receive these waivers or discounts. If you change intermediaries after you purchase fund shares, the policies and procedures of the new service provider (either your new intermediary or the fund’s transfer agent) will apply to your account. Those policies may be more or less favorable than those offered by the intermediary through which you purchased your fund shares. You should review any policy differences before changing intermediaries.

Merrill Lynch, Pierce, Fenner & Smith

Effective April 10, 2017, shareholders purchasing fund shares through a Merrill Lynch platform or account are eligible only for the following sales charge waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this fund’s prospectus or SAI.

Front-end sales charge waivers on Class A shares available at Merrill Lynch

· Employer-sponsored retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan. Except as provided below, Class A shares are not currently available to new plans described in this waiver. Plans that invested in Class A shares of any of the funds 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 American Funds Class A shares without any initial or contingent deferred sales charge.

· Shares purchased by or through a 529 Plan. Class A shares are not currently available to the plans described in this waiver

· Shares purchased through a Merrill Lynch affiliated investment advisory program. Class A shares are not currently available in the programs described in this waiver

· Shares purchased by third-party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform. Class A shares are not currently available in the accounts described in this waiver

· Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family)

56 American Funds Emerging Markets Bond Fund / Prospectus








· Shares exchanged from Class C (i.e. level-load) shares of the same fund in the month of or following the 10-year anniversary of the purchase date. To the extent that this prospectus elsewhere provides for a waiver with respect to such shares following a shorter holding period, that waiver will apply to exchanges following such shorter period. To the extent that this prospectus elsewhere provides for a waiver with respect to exchanges of Class C shares for sales charge waived shares, that waiver will apply to such exchanges

· Employees and registered representatives of Merrill Lynch or its affiliates and their family members

· Directors or Trustees of the fund, and employees of the fund’s investment adviser or any of its affiliates, as described in this prospectus

· Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales charge (known as rights of reinstatement)

CDSC Waivers on Classes A, B and C shares available at Merrill Lynch

· Death or disability of the shareholder

· Shares sold as part of a systematic withdrawal plan as described in the fund’s prospectus

· Return of excess contributions from an IRA Account

· Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 70½ as described in the fund’s prospectus

· Shares sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch

· Shares acquired through a right of reinstatement

· Shares held in retirement brokerage accounts, that are exchanged for a lower cost share class due to transfer to certain fee based accounts or platforms (applicable to Class A and C shares only)

Front-end sales charge discounts available at Merrill Lynch: breakpoints, rights of accumulation and letters of intent

· Breakpoints as described in this prospectus.

· Rights of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the rights of accumulation calculation only if the shareholder notifies his or her financial advisor about such assets

· Letters of Intent which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over a 13-month period of time (if applicable)

American Funds Emerging Markets Bond Fund / Prospectus 57








Morgan Stanley Wealth Management

Morgan Stanley Wealth Management Class A share front-end sales charge waiver

Effective July 1, 2018, Morgan Stanley Wealth Management clients purchasing Class A shares of the fund through Morgan Stanley transactional brokerage accounts are entitled to a waiver of the front-end sales charge in the following additional circumstances:

· Morgan Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules.

· Shares purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund.

· Class C (level load) share positions that are no longer subject to a contingent deferred sales charge and are converted to a Class A share in the same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program.

· Shares purchased from the proceeds of redemptions within the same fund family under a Rights of Reinstatement provision, provided the repurchase occurs within 90 days following the redemption, the redemption and purchase occur in the same account, and redeemed shares were subject to a front-end or deferred sales charge.

Unless specifically described above, no other front-end sales charge waivers are available to mutual fund purchases by Morgan Stanley Wealth Management clients.

Morgan Stanley Wealth Management Class R-4 share employer-sponsored retirement plan eligibility

Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans.

Raymond James & Associates, Inc., Raymond James Financial Services, Inc., and

each entity’s affiliates (“Raymond James”) Class A share Front-End Sales Charge Waiver

Effective March 1, 2019, shareholders purchasing fund shares through a Raymond James platform or account, or through an introducing broker-dealer or independent registered investment adviser for which Raymond James provides trade execution, clearance, and/or custody services, will be eligible only for the following sales charge waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this fund’s prospectus or SAI.

Front-end sales charge waivers on Class A shares available at Raymond James

· Shares purchased within the same fund family through a systematic reinvestment of capital gains and dividend distributions.

· Employees and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James.

· Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales charge (known as Rights of Reinstatement).

58 American Funds Emerging Markets Bond Fund / Prospectus








· A shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of Raymond James.

CDSC Waivers on Classes A and C shares available at Raymond James

· Death or disability of the shareholder.

· Shares sold as part of a systematic withdrawal plan as described in the fund’s prospectus.

· Return of excess contributions from an IRA Account.

· Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based on applicable IRS regulations as described in the fund’s prospectus.

· Shares sold to pay Raymond James fees but only if the transaction is initiated by Raymond James.

· Shares acquired through a right of reinstatement.

Front-end sales charge discounts available at Raymond James: breakpoints, rights of accumulation and/or letters of intent

· Breakpoints as described in this prospectus.

· Rights of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Raymond James. Eligible fund family assets not held at Raymond James may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about such assets.

· Letters of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible fund family assets not held at Raymond James may be included in the calculation of letters of intent only if the shareholder notifies his or her financial advisor about such assets.

American Funds Emerging Markets Bond Fund / Prospectus 59








Class A Shares Front-End Sales Charge Waivers Available at Ameriprise Financial:

The following information applies to Class A shares purchases if you have an account with or otherwise purchase Fund shares through Ameriprise Financial:

Effective January 1, 2019, shareholders purchasing Fund shares through an Ameriprise Financial platform or account are eligible for the following front-end sales charge waivers, which may differ from those disclosed elsewhere in this Fund’s prospectus or SAI:

· Employer-sponsored retirement plans established prior to 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 (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs or SAR-SEPs.

· Shares purchased through an Ameriprise Financial investment advisory program (if an Advisory or similar share class for such investment advisory program is not available).

· Shares purchased by third-party investment advisors on behalf of their advisory clients through Ameriprise Financial’s platform (if an Advisory or similar share class for such investment advisory program is not available).

· Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same Fund (but not any other fund within the same fund family).

· Shares exchanged from Class C shares of the same fund in the month of or following the 10-year anniversary of the purchase date. To the extent that this prospectus elsewhere provides for a waiver with respect to such shares following a shorter holding period, that waiver will apply to exchanges following such shorter period. To the extent that this prospectus elsewhere provides for a waiver with respect to exchanges of Class C shares for sales charge waived shares, that waiver will also apply to such exchanges.

· Employees and registered representatives of Ameriprise Financial or its affiliates and their immediate family members.

· Shares purchased by or through qualified accounts (including IRAs, Coverdell Education Savings Accounts, as well as 401(k)s, 403(b) TSCAs subject to ERISA and defined benefit plans established prior to April 1, 2004 that continue to meet the eligibility requirements in effect as of that date for purchasing Class A shares at net asset value) that are held by a covered family member, defined as an Ameriprise financial advisor and/or the advisor’s spouse, advisor’s lineal ascendant (mother, father, grandmother, grandfather, great grandmother, great grandfather), advisor’s lineal descendant (son, step-son, daughter, step-daughter, grandson, granddaughter, great grandson, great granddaughter) or any spouse of a covered family member who is a lineal descendant.

· Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales charge (i.e. Rights of Reinstatement).

60 American Funds Emerging Markets Bond Fund / Prospectus








D.A. Davidson & Co.

Front-end sales charge waivers on Class A shares available at D.A. Davidson (effective January 1, 2020)

· Shares purchased within the same fund family through a systematic reinvestment of capital gains and dividend distributions.

· Employees and registered representatives of D.A. Davidson or its affiliates and their family members as designated by D.A. Davidson.

· Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales charge (known as Rights of Reinstatement).

· A shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is consistent with D.A. Davidson’s policies and procedures.

CDSC Waivers on Classes A and C shares available at D.A. Davidson

• Death or disability of the shareholder.

· Shares sold as part of a systematic withdrawal plan as described in the fund’s prospectus.

· Return of excess contributions from an IRA Account.

· Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 70½ as described in the fund’s prospectus.

· Shares acquired through a right of reinstatement.

Front-end sales charge discounts available at D.A. Davidson: breakpoints, rights of accumulation and/or letters of intent

· Breakpoints as described in this prospectus.

· Rights of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at D.A. Davidson. Eligible fund family assets not held at D.A. Davidson may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about such assets.

· Letters of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible fund family assets not held at D.A. Davidson may be included in the calculation of letters of intent only if the shareholder notifies his or her financial advisor about such assets.

American Funds Emerging Markets Bond Fund / Prospectus 61








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
capitalgroup.com
For Class R share information, visit
AmericanFundsRetirement.com
Telephone calls you have with Capital Group may be monitored or recorded for quality assurance, verification and recordkeeping purposes. By speaking to Capital Group 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 as to the meaning of any word or phrase in a translation, the English text will prevail. Liability is not limited as a result of any material misstatement or omission introduced in the translation.

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 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. The codes of ethics, current SAI and shareholder reports are also available, free of charge, on our website, capitalgroup.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, capitalgroup.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 6455 Irvine Center Drive, Irvine, California 92618.

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




MFGEPRX-114-0320P
Litho in USA CGD/DFS/10453
Investment Company File No. 811-23122








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.



/s/ STEVEN I. KOSZALKA
STEVEN I. KOSZALKA
SECRETARY








American Funds Emerging Markets Bond Fund®

Part B
Statement of Additional Information

March 1, 2020

This document is not a prospectus but should be read in conjunction with the current prospectus of American Funds Emerging Markets Bond Fund (the “fund”) dated March 1, 2020. 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:

American Funds Emerging Markets Bond Fund
Attention: Secretary

6455 Irvine Center Drive
Irvine, California 92618

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 EBNAX Class 529-A CBNAX Class R-1 REGAX
Class C EBNCX Class 529-C CBNCX Class R-2 REGBX
Class T TEBMX Class 529-E CBNEX Class R-2E REGHX
Class F-1 EBNEX Class 529-T TMEBX Class R-3 REGCX
Class F-2 EBNFX Class 529-F-1 CBNFX Class R-4 REGEX
Class F-3 EBNGX Class R-5E REGJX
Class R-5 REGFX
Class R-6 REGGX
Table of Contents

Item Page no.

Certain investment limitations and guidelines 2
Description of certain securities, investment techniques and risks 3
Fund policies 27
Management of the fund 29
Execution of portfolio transactions 60
Disclosure of portfolio holdings 64
Price of shares 66
Taxes and distributions 69
Purchase and exchange of shares 72
Sales charges 77
Sales charge reductions and waivers 80
Selling shares 84
Shareholder account services and privileges 85
General information 88
Appendix 98
Investment portfolio
Financial statements

American Funds Emerging Markets Bond Fund — 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 instruments

· The fund will invest at least 80% of its net assets in bonds and other debt instruments, including all forms of sovereign debt, debentures, notes, securities with equity and fixed income characteristics (such as bonds with warrants attached, convertible bonds, hybrids and certain preferred securities), securities backed by mortgages and other assets and cash and cash equivalents. For purposes of this investment guideline, investments may be represented by derivative instruments, such as futures contracts and swap agreements. The fund currently intends to look to the ratings from Moody’s Investors Service, Standard & Poor’s Ratings Services 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.

Investing outside the U.S.

· The fund will invest at least 80% of its net assets in securities of emerging markets issuers defined as securities (1) that are from issuers in emerging markets as defined by global index providers designated by the investment adviser (for example, the investment adviser expects that most emerging markets included in any one of the Morgan Stanley Capital Index (MSCI) Emerging Markets or Frontier Market Indices or J.P. Morgan Emerging Markets Bond and J.P. Morgan Global Indices will be treated as emerging markets); (2) that are denominated in emerging market currencies; (3) that are from issuers deemed to be suitable for the fund because they have or are expected to have significant economic exposure to emerging markets (through assets, revenues, or profits); (4) that are issued by countries rated Ba/BB or lower; or (5) that are issued by countries that are on an IMF program, have outstanding liabilities to the IMF or have exited an IMF program no more than five years earlier.

· The fund may invest up to 100% of its assets in securities denominated in currencies other than the U.S. dollar.

· The fund may invest up to 5% of its assets in equity securities.

* * * * * *

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

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Description of certain securities, investment techniques and risks

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

Debt instruments — 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. Prices of these 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.

Lower rated debt securities, rated Ba1/BB+ or below by Nationally Recognized Statistical Rating Organizations, are described by the rating agencies as speculative and involve greater risk of default or price changes due to changes in the issuer’s creditworthiness than higher rated debt securities, or they may already be in default. Such securities are sometimes referred to as “junk bonds” or high yield bonds. The market prices of these securities may fluctuate more than higher quality securities and may decline significantly in periods of general economic difficulty. It may be more difficult to dispose of, and to determine the value of, lower rated debt securities. Investment grade bonds in the ratings categories A or Baa/BBB also may be more susceptible to changes in market or economic conditions than bonds rated in the highest rating categories.

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.

Payment expectations — Debt securities may contain redemption or call provisions. If an issuer exercises these provisions in a lower interest rate market, the fund may 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.

American Funds Emerging Markets Bond Fund — Page 3






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.

The investment adviser attempts to reduce the risks described above through diversification of the fund’s portfolio and by credit analysis of each issuer, as well as by monitoring broad economic trends and corporate and legislative developments, but there can be no assurance that it will be successful in doing so.

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.

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.

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 indexes 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-linked 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

American Funds Emerging Markets Bond Fund — Page 4






would decline, leading to an increase in value of the inflation-linked 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-linked securities. There can be no assurance, however, that the value of inflation-linked 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-linked securities may be less developed or liquid, and more volatile, than certain other securities markets. There is a limited number of inflation-linked securities currently available for the fund to purchase, making the market less liquid and more volatile than the U.S. Treasury and agency markets.

Securities with equity and debt characteristics — Certain securities have a combination of equity and debt characteristics. Such securities may at times behave more like equity than debt or vice versa.

Preferred stock — Preferred stock represents an equity interest in an issuer that generally entitles the holder to receive, in preference to common stockholders and the holders of certain other stocks, dividends and a fixed share of the proceeds resulting from a liquidation of the issuer. Preferred stocks may pay fixed or adjustable rates of return, and preferred stock dividends may be cumulative or non-cumulative and participating or non-participating. Cumulative dividend provisions require all or a portion of prior unpaid dividends to be paid before dividends can be paid to the issuer’s common stockholders, while prior unpaid dividends on non-cumulative preferred stock are forfeited. Participating preferred stock may be entitled to a dividend exceeding the issuer’s declared dividend in certain cases, while non-participating preferred stock is entitled only to the stipulated dividend. Preferred stock is subject to issuer-specific and market risks applicable generally to equity securities. As with debt securities, the prices and yields of preferred stocks often move with changes in interest rates and the issuer’s credit quality. Additionally, a company’s preferred stock typically pays dividends only after the company makes required payments to holders of its bonds and other debt. Accordingly, the price of preferred stock will usually react more strongly than bonds and other debt to actual or perceived changes in the issuing company’s financial condition or prospects. Preferred stock of smaller companies may be more vulnerable to adverse developments than preferred stock of larger companies.

Convertible securities — A convertible security is a debt obligation, preferred stock or other security that may be converted, within a specified period of time and at a stated conversion rate, into common stock or other equity securities of the same or a different issuer. The conversion may occur automatically upon the occurrence of a predetermined event or at the option of either the issuer or the security holder. Under certain circumstances, a convertible security may also be called for redemption or conversion by the issuer after a particular date and at predetermined price specified upon issue. If a convertible security held by the fund is called for redemption or conversion, the fund could be required to tender the security for redemption, convert it into the underlying common stock, or sell it to a third party.

The holder of a convertible security is generally entitled to participate in the capital appreciation resulting from a market price increase in the issuer’s common stock and to receive interest paid or accrued until the convertible security matures or is redeemed, converted or exchanged. Before conversion, convertible securities have characteristics similar

American Funds Emerging Markets Bond Fund — Page 5






to non-convertible debt or preferred securities, as applicable. Convertible securities rank senior to common stock in an issuer’s capital structure and, therefore, normally entail less risk than the issuer’s common stock. However, convertible securities may also be subordinate to any senior debt obligations of the issuer, and, therefore, an issuer’s convertible securities may entail more risk than such senior debt obligations. Convertible securities usually offer lower interest or dividend yields than non-convertible debt securities of similar credit quality because of the potential for capital appreciation. In addition, convertible securities are often lower-rated securities.

Because of the conversion feature, the price of a convertible security will normally fluctuate in some proportion to changes in the price of the underlying asset, and, accordingly, convertible securities are subject to risks relating to the activities of the issuer and/or general market and economic conditions. The income component of a convertible security may cushion the security against declines in the price of the underlying asset but may also cause the price of the security to fluctuate based upon changes in interest rates and the credit quality of the issuer. As with a straight fixed income security, the price of a convertible security tends to increase when interest rates decline and decrease when interest rates rise. Like the price of a common stock, the price of a convertible security also tends to increase as the price of the underlying stock rises and to decrease as the price of the underlying stock declines.

Hybrid securities — A hybrid security is a type of security that also has equity and debt characteristics. Like equities, which have no final maturity, a hybrid security may be perpetual. On the other hand, like debt securities, a hybrid security may be callable at the option of the issuer on a date specified at issue. Additionally, like common equities, which may stop paying dividends at virtually any time without violating any contractual terms or conditions, hybrids typically allow for issuers to withhold payment of interest until a later date or to suspend coupon payments entirely without triggering an event of default. Hybrid securities are normally at the bottom of an issuer’s debt capital structure because holders of an issuer’s hybrid securities are structurally subordinated to the issuer’s senior creditors. In bankruptcy, hybrid security holders should only get paid after all senior creditors of the issuer have been paid but before any disbursements are made to the issuer’s equity holders. Accordingly, hybrid securities may be more sensitive to economic changes than more senior debt securities. Such securities may also be viewed as more equity-like by the market when the issuer or its parent company experiences financial difficulties.

Contingent convertible securities, which are also known as contingent capital securities, are a form of hybrid security that are intended to either convert into equity or have their principal written down upon the occurrence of certain trigger events. One type of contingent convertible security has characteristics designed to absorb losses, by providing that the liquidation value of the security may be adjusted downward to below the original par value or written off entirely under certain circumstances. For instance, if losses have eroded the issuer’s capital level below a specified threshold, the liquidation value of the security may be reduced in whole or in part. The write-down of the security’s par value may occur automatically and would not entitle holders to institute bankruptcy proceedings against the issuer. In addition, an automatic write-down could result in a reduced income rate if the dividend or interest payment associated with the security is based on the security’s par value. Such securities may, but are not required to, provide for circumstances under which the liquidation value of the security may be adjusted back up to par, such as an improvement in capitalization or earnings. Another type of contingent convertible security provides for mandatory conversion of the security into common shares of the issuer under certain circumstances. The mandatory conversion might relate, for example, to the issuer’s failure to maintain a capital minimum. Since the common stock of the issuer may not pay a dividend, investors in such instruments could experience reduced yields (or no yields at all) and conversion would deepen the subordination of the investor, effectively worsening the investor’s standing in the case of the issuer’s insolvency. An

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automatic write-down or conversion event with respect to a contingent convertible security will typically be triggered by a reduction in the issuer’s capital level, but may also be triggered by regulatory actions, such as a change in regulatory capital requirements, or by other factors.

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, but are not limited to, 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 congressional charter; some are backed by collateral consisting of “full faith and credit” obligations as described above; 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: the Federal Home Loan Banks, the Federal Home Loan Mortgage Corporation (“Freddie Mac”), the Federal National Mortgage Association (“Fannie Mae”), the Tennessee Valley Authority and the Federal Farm Credit Bank System.

In 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 the 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

American Funds Emerging Markets Bond Fund — Page 7






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 the 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, corporate loans or other assets including, but not limited to, residential mortgage loans, home equity loans, mortgages on commercial buildings, consumer loans and equipment leases. 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. The risks of an investment in these obligations depend in part on the type of the collateral securing the obligations and the class of the instrument in which the fund invests. 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.

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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.

Collateralized bond obligations (CBOs) and collateralized loan obligations (CLOs) — A CBO is a trust typically backed by a diversified pool of fixed-income securities, which may include high risk, lower rated securities. A CLO is a trust typically collateralized by a pool of loans, which may include, among others, senior secured loans, senior unsecured loans, and subordinate corporate loans, including lower rated loans. CBOs and CLOs may charge management fees and administrative expenses.

For both CBOs and CLOs, the cash flows from the trust are split into two or more portions, called tranches, varying in risk and yield. The riskiest and highest yielding portion is the “equity” tranche which bears the bulk of any default by the bonds or loans in the trust and is constructed to protect the other, more senior tranches from default. Since they are partially protected from defaults, the more senior tranches typically have higher ratings and lower yields than the underlying securities in the trust and can be rated investment grade. Despite the protection from the equity tranche, the more senior tranches can still experience substantial losses due to actual defaults of the underlying assets, increased sensitivity to defaults due to impairment of the collateral or the more junior tranches, market anticipation of defaults, as well as potential general aversions to CBO or CLO securities as a class. Normally, these securities are privately offered and sold, and thus, are not registered under the securities laws. CBOs and CLOs may be less liquid, may exhibit greater price volatility and may be more difficult to value than other securities.

“IOs” and “POs” are issued in portions or tranches with varying maturities and characteristics. Some tranches may only receive the interest paid on the underlying mortgages (IOs) and others may only receive the principal payments (POs). The values of IOs and POs are extremely sensitive to interest rate fluctuations and prepayment rates, and IOs are also subject to the risk of early repayment of the underlying mortgages that will substantially reduce or eliminate interest payments.

Investing outside the U.S. — Securities of issuers domiciled outside the United States, or with significant operations or revenues outside the United States, may lose value because of adverse political, social, economic or market developments (including social instability, regional conflicts, terrorism and war) in

American Funds Emerging Markets Bond Fund — Page 9






the countries or regions in which the issuers are domiciled, operate or generate revenue. These issuers may also be more susceptible to actions of foreign governments such as the imposition of price controls or punitive taxes that could adversely impact the value of these securities. To the extent the fund invests in securities that are denominated in currencies other than the U.S. dollar, these securities may also lose value due to changes in foreign currency exchange rates against the U.S. dollar and/or currencies of other countries. Securities markets in certain countries may be more volatile or less liquid than those in the United States. Investments outside the United States may also be subject to different accounting practices and different regulatory, legal and reporting standards, and may be more difficult to value, than those in the United States. In addition, the value of investments outside the United States may be reduced by foreign taxes, including foreign withholding taxes on interest and dividends. Further, there may be increased risks of delayed settlement of securities purchased or sold by the fund. The risks of investing outside the United States may be heightened in connection with investments in emerging markets.

Additional costs could be incurred in connection with the fund’s investment activities outside the United States. Brokerage commissions may be higher outside the United States, and the fund will bear certain expenses in connection with its currency transactions. Furthermore, increased custodian costs may be associated with maintaining assets in certain jurisdictions.

Investing in emerging markets — Investing in emerging markets may involve risks in addition to and greater than those generally associated with investing in the securities markets of developed countries. For instance, developing countries may have less developed legal and accounting systems than those in developed countries. The governments of these countries may be less stable and more likely to impose capital controls, nationalize a company or industry, place restrictions on foreign ownership and on withdrawing sale proceeds of securities from the country, and/or impose punitive taxes that could adversely affect the prices of securities. In addition, the economies of these countries may be dependent on relatively few industries that are more susceptible to local and global changes. Securities markets in these countries can also be relatively small and have substantially lower trading volumes. As a result, securities issued in these countries may be more volatile and less liquid, and may be more difficult to value, than securities issued in countries with more developed economies and/or markets. Additionally, there may be increased settlement risks for transactions in local securities.

Although there is no universally accepted definition, the investment adviser generally considers an emerging market to be a market that is in the earlier stages of its 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.”

Certain risk factors related to emerging markets

Currency fluctuations — Certain emerging markets’ currencies have experienced and in the future may experience significant declines against the U.S. dollar. For example, if the U.S. dollar appreciates against foreign currencies, the value of the fund’s emerging markets securities holdings would generally depreciate and vice versa. Further, the fund may lose money due to losses and other expenses incurred in converting various currencies to purchase and sell securities valued in currencies other than the U.S. dollar, as well as from currency restrictions, exchange control regulation and currency devaluations.

Government regulation — Certain developing countries lack uniform accounting, auditing and financial reporting and disclosure standards, have less governmental supervision of financial markets than in the United States, and do not honor legal rights enjoyed in the United States. Certain governments may be more unstable and present greater risks of nationalization or restrictions on foreign ownership of local companies. Repatriation of investment income,

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capital and the proceeds of sales by foreign investors may require governmental registration and/or approval in some developing countries. While the fund will only invest in markets where these restrictions are considered acceptable by the investment adviser, a country could impose new or additional repatriation restrictions after the fund’s investment. If this happened, the fund’s response might include, among other things, applying to the appropriate authorities for a waiver of the restrictions or engaging in transactions in other markets designed to offset the risks of decline in that country. Such restrictions will be considered in relation to the fund’s liquidity needs and other factors. Further, some attractive equity securities may not be available to the fund if foreign shareholders already hold the maximum amount legally permissible.

While government involvement in the private sector varies in degree among developing countries, such involvement may in some cases include government ownership of companies in certain sectors, wage and price controls or imposition of trade barriers and other protectionist measures. With respect to any developing country, there is no guarantee that some future economic or political crisis will not lead to price controls, forced mergers of companies, expropriation, or creation of government monopolies to the possible detriment of the fund’s investments.

Fluctuations in inflation rates — Rapid fluctuations in inflation rates may have negative impacts on the economies and securities markets of certain emerging market countries.

Less developed securities markets — Emerging markets may be less well-developed than other markets. These markets have lower trading volumes than the securities markets of more developed countries and may be unable to respond effectively to increases in trading volume. Consequently, these markets may be substantially less liquid than those of more developed countries, and the securities of issuers located in these markets may have limited marketability. These factors may make prompt liquidation of substantial portfolio holdings difficult or impossible at times.

Settlement risks — Settlement systems in developing countries are generally less well organized than those of developed markets. Supervisory authorities may also be unable to apply standards comparable to those in developed markets. Thus, there may be risks that settlement may be delayed and that cash or securities belonging to the fund may be in jeopardy because of failures of or defects in the systems. In particular, market practice may require that payment be made before receipt of the security being purchased or that delivery of a security be made before payment is received. In such cases, default by a broker or bank (the “counterparty”) through whom the transaction is effected might cause the fund to suffer a loss. The fund will seek, where possible, to use counterparties whose financial status is such that this risk is reduced. However, there can be no certainty that the fund will be successful in eliminating this risk, particularly as counterparties operating in developing countries frequently lack the standing or financial resources of those in developed countries. There may also be a danger that, because of uncertainties in the operation of settlement systems in individual markets, competing claims may arise with respect to securities held by or to be transferred to the fund.

Insufficient market information — The fund may encounter problems assessing investment opportunities in certain emerging markets in light of limitations on available information and different accounting, auditing and financial reporting standards. In such circumstances, the fund’s investment adviser will seek alternative sources of information, and to the extent the investment adviser is not satisfied with the sufficiency of the information obtained with respect to a particular market or security, the fund will not invest in such market or security.

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Taxation — Taxation of dividends, interest and capital gains received by the fund varies among developing countries and, in some cases, is comparatively high. In addition, developing countries typically have less well-defined tax laws and procedures and such laws may permit retroactive taxation so that the fund could become subject in the future to local tax liability that it had not reasonably anticipated in conducting its investment activities or valuing its assets.

Litigation — The fund and its shareholders may encounter substantial difficulties in obtaining and enforcing judgments against individuals residing outside of the U.S. and companies domiciled outside of the U.S.

Fraudulent securities — Securities purchased by the fund may subsequently be found to be fraudulent or counterfeit, resulting in a loss to the fund.

Derivatives — In pursuing its investment objective, the fund may invest in derivative instruments. A derivative is a financial instrument, the value of which depends on, or is otherwise derived from, another underlying variable. Most often, the variable underlying a derivative is the price of a traded asset, such as a traditional cash security (e.g., a stock or bond), a currency or a commodity; however, the value of a derivative can be dependent on almost any variable, from the level of an index or a specified rate to the occurrence (or non-occurrence) of a credit event with respect to a specified reference asset. In addition to investing in forward currency contracts, as described below under “Currency transactions,” the fund may take positions in futures contracts, interest rate swaps and credit default swap indices, each of which is a derivative instrument described in greater detail below.

Derivative instruments may be distinguished by the manner in which they trade: some are standardized instruments that trade on an organized exchange while others are individually negotiated and traded in the over-the-counter (OTC) market. Derivatives also range broadly in complexity, from simple derivatives to more complex instruments. As a general matter, however, all derivatives — regardless of the manner in which they trade or their relative complexities — entail certain risks, some of which are different from, and potentially greater than, the risks associated with investing directly in traditional cash securities.

As is the case with traditional cash securities, derivative instruments are generally subject to counterparty credit risk; however, in some cases, derivatives may pose counterparty risks greater than those posed by cash securities. The use of derivatives involves the risk that a loss may be sustained by the fund as a result of the failure of the fund’s counterparty to make required payments or otherwise to comply with its contractual obligations. For some derivatives, though, the value of — and, in effect, the return on — the instrument may be dependent on both the individual credit of the fund’s counterparty and on the credit of one or more issuers of any underlying assets. If the fund does not correctly evaluate the creditworthiness of its counterparty and, where applicable, of issuers of any underlying reference assets, the fund’s investment in a derivative instrument may result in losses. Further, if a fund’s counterparty were to default on its obligations, the fund’s contractual remedies against such counterparty may be subject to applicable bankruptcy and insolvency laws, which could affect the fund’s rights as a creditor and delay or impede the fund’s ability to receive the net amount of payments that it is contractually entitled to receive.

The value of some derivative instruments in which the fund invests may be particularly sensitive to changes in prevailing interest rates, currency exchange rates or other market conditions. Like the fund’s other investments, the ability of the fund to successfully utilize such derivative instruments may depend in part upon the ability of the fund’s investment adviser to accurately forecast interest rates and other economic factors. The success of the fund’s derivative investment strategy will also depend on the investment adviser’s ability to assess and predict the impact of market or economic developments on the derivative instruments in which the fund invests, in some cases without having had the benefit of observing the performance of a derivative under all possible market conditions. If

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the investment adviser incorrectly forecasts such factors and has taken positions in derivative instruments contrary to prevailing market trends, or if the investment adviser incorrectly predicts the impact of developments on a derivative instrument, the fund could be exposed to the risk of loss.

Certain derivatives may also be subject to liquidity and valuation risks. The potential lack of a liquid secondary market for a derivative (and, particularly, for an OTC derivative) may cause difficulty in valuing or selling the instrument. If a derivative transaction is particularly large or if the relevant market is illiquid, as is often the case with many privately-negotiated OTC derivatives, the fund may not be able to initiate a transaction or to liquidate a position at an advantageous time or price. Particularly when there is no liquid secondary market for the fund’s derivative positions, the fund may encounter difficulty in valuing such illiquid positions. The value of a derivative instrument does not always correlate perfectly with its underlying asset, rate or index, and many derivatives, and OTC derivatives in particular, are complex and often valued subjectively. Improper valuations can result in increased cash payment requirements to counterparties or a loss of value to the fund.

Because certain derivative instruments may obligate the fund to make one or more potential future payments, which could significantly exceed the value of the fund’s initial investments in such instruments, derivative instruments may also have a leveraging effect on the fund’s portfolio. Certain derivatives have the potential for unlimited loss, irrespective of the size of the fund’s investment in the instrument. When a fund leverages its portfolio, investments in that fund will tend to be more volatile, resulting in larger gains or losses in response to market changes. In accordance with applicable regulatory requirements, the fund will generally segregate or earmark liquid assets, or enter into offsetting financial positions, to cover its obligations under derivative instruments, effectively limiting the risk of leveraging the fund’s portfolio. Because the fund is legally required to maintain asset coverage or offsetting positions in connection with leveraging derivative instruments, the fund’s investments in such derivatives may also require the fund to buy or sell portfolio securities at disadvantageous times or prices in order to comply with applicable requirements.

Futures — The fund may enter into futures contracts to seek to manage the fund’s interest rate sensitivity by increasing or decreasing the duration of the fund or a portion of the fund’s portfolio. A futures contract is an agreement to buy or sell a security or other financial instrument (the “reference asset”) for a set price on a future date. Futures contracts are standardized, exchange-traded contracts, and, when a futures contract is bought or sold, the fund will incur brokerage fees and will be required to maintain margin deposits.

Unlike when the fund purchases or sells a security, such as a stock or bond, no price is paid or received by the fund upon the purchase or sale of a futures contract. When the fund enters into a futures contract, the fund is required to deposit with its futures broker, known as a futures commission merchant (FCM), a specified amount of liquid assets in a segregated account in the name of the FCM at the applicable derivatives clearinghouse or exchange. This amount, known as initial margin, is set by the futures exchange on which the contract is traded and may be significantly modified during the term of the contract. The initial margin is in the nature of a performance bond or good faith deposit on the futures contract, which is returned to the fund upon termination of the contract, assuming all contractual obligations have been satisfied. Additionally, on a daily basis, the fund pays or receives cash, or variation margin, equal to the daily change in value of the futures contract. Variation margin does not represent a borrowing or loan by the fund but is instead a settlement between the fund and the FCM of the amount one party would owe the other if the futures contract expired. In computing daily net asset value, the fund will mark-to-market its open futures positions. In the event of the bankruptcy or insolvency of an FCM that holds margin on behalf of the fund, the fund may be entitled to return of margin owed to it only in proportion to the amount received by the FCM’s other customers, potentially resulting in losses to the fund. An event of bankruptcy or insolvency at a clearinghouse or exchange holding initial margin could also result in losses for the fund.

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When the fund invests in futures contracts and deposits margin with an FCM, the fund becomes subject to so-called “fellow customer” risk – that is, the risk that one or more customers of the FCM will default on their obligations and that the resulting losses will be so great that the FCM will default on its obligations and margin posted by one customer, such as the fund, will be used to cover a loss caused by a different defaulting customer. Applicable rules generally prohibit the use of one customer’s funds to meet the obligations of another customer and limit the ability of an FCM to use margin posed by non-defaulting customers to satisfy losses caused by defaulting customers. As a general matter, an FCM is required to use its own funds to meet a defaulting customer’s obligations. While a customer’s loss would likely need to be substantial before non-defaulting customers would be exposed to loss on account of fellow customer risk, applicable rules nevertheless permit the commingling of margin and do not limit the mutualization of customer losses from investment losses, custodial failures, fraud or other causes. If the loss is so great that, notwithstanding the application of an FCM’s own funds, there is a shortfall in the amount of customer funds required to be held in segregation, the FCM could default and be placed into bankruptcy. Under these circumstances, bankruptcy law provides that non-defaulting customers will share pro rata in any shortfall. A shortfall in customer segregated funds may also make the transfer of the accounts of non-defaulting customers to another FCM more difficult.

Although certain futures contracts, by their terms, require actual future delivery of and payment for the reference asset, in practice, most futures contracts are usually closed out before the delivery date by offsetting purchases or sales of matching futures contracts. Closing out an open futures contract purchase or sale is effected by entering into an offsetting futures contract sale or purchase, respectively, for the same aggregate amount of the identical reference asset and the same delivery date with the same FCM. If the offsetting purchase price is less than the original sale price (in each case taking into account transaction costs, including brokerage fees), the fund realizes a gain; if it is more, the fund realizes a loss. Conversely, if the offsetting sale price is more than the original purchase price (in each case taking into account transaction costs, including brokerage fees), the fund realizes a gain; if it is less, the fund realizes a loss.

The fund is generally required to segregate liquid assets equivalent to the fund’s outstanding obligations under each futures contract. With respect to long positions in futures contracts that are not legally required to cash settle, the fund will segregate or earmark liquid assets in an amount equal to the contract price the fund will be required to pay on settlement less the amount of margin deposited with an FCM. For short positions in futures contracts that are not legally required to cash settle, the fund will segregate or earmark liquid assets in an amount that, when added to the amounts deposited with an FCM as margin, equals the market value of the reference asset underlying the futures contract. With respect to futures contracts that are required to cash settle, however, the fund is permitted to segregate or earmark liquid assets in an amount that, when added to the amounts deposited with an FCM as margin, equals the fund’s daily marked-to-market (net) obligation under the contract (i.e., the daily market value of the contract itself), if any; in other words, the fund may set aside its daily net liability, if any, rather than the notional value of the futures contract. By segregating or earmarking assets equal only to its net obligation under cash-settled futures, the fund may be able to utilize these contracts to a greater extent than if the fund were required to segregate or earmark assets equal to the full contract price or current market value of the futures contract. Such segregation of assets is intended to ensure that the fund has assets available to satisfy its obligations with respect to futures contracts and to limit any potential leveraging of the fund’s portfolio. However, segregation of liquid assets will not limit the fund’s exposure to loss. To maintain a sufficient amount of segregated assets, the fund may also have to sell less liquid portfolio securities at disadvantageous prices, and the earmarking of liquid assets will have the effect of limiting the fund’s ability to otherwise invest those assets in other securities or instruments.

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The value of a futures contract tends to increase and decrease in tandem with the value of its underlying reference asset. Purchasing futures contracts will, therefore, tend to increase the fund’s exposure to positive and negative price fluctuations in the reference asset, much as if the fund had purchased the reference asset directly. When the fund sells a futures contract, by contrast, the value of its futures position will tend to move in a direction contrary to the market for the reference asset. Accordingly, selling futures contracts will tend to offset both positive and negative market price changes, much as if the reference asset had been sold.

There is no assurance that a liquid market will exist for any particular futures contract at any particular time. Futures exchanges may establish daily price fluctuation limits for futures contracts and may halt trading if a contract’s price moves upward or downward more than the limit in a given day. On volatile trading days, when the price fluctuation limit is reached and a trading halt is imposed, it may be impossible to enter into new positions or close out existing positions. If the market for a futures contract is not liquid because of price fluctuation limits or other market conditions, the fund may be prevented from promptly liquidating unfavorable futures positions and the fund could be required to continue to hold a position until delivery or expiration regardless of changes in its value, potentially subjecting the fund to substantial losses. Additionally, the fund may not be able to take other actions or enter into other transactions to limit or reduce its exposure to the position. Under such circumstances, the fund would remain obligated to meet margin requirements until the position is cleared. As a result, the fund’s access to other assets held to cover its futures positions could also be impaired.

Although futures exchanges generally operate similarly in the United States and abroad, foreign futures exchanges may follow trading, settlement and margin procedures that are different than those followed by futures exchanges in the United States. Futures contracts traded outside the United States may not involve a clearing mechanism or related guarantees and may involve greater risk of loss than U.S.-traded contracts, including potentially greater risk of losses due to insolvency of a futures broker, exchange member, or other party that may owe initial or variation margin to the fund. Margin requirements on foreign futures exchanges may be different than those of futures exchanges in the United States, and, because initial and variation margin payments may be measured in foreign currency, a futures contract traded outside the United States may also involve the risk of foreign currency fluctuations.

Interest rate swaps — The fund may enter into interest rate swaps to seek 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 is based on a designated short-term interest rate 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, less the value of any posted margin or collateral on deposit with respect to the position.

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

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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.

Credit default swap indices — In order to assume exposure to a diversified portfolio of credits or to hedge against existing credit risks, the fund may invest in credit default swap indices (“CDXs”). A CDX is based on a portfolio of credit default swaps with similar characteristics, such as credit default swaps on high-yield bonds. In a typical CDX transaction, one party — the protection buyer — is obligated to pay the other party — the protection seller — a stream of periodic payments over the term of the contract. If a credit event, such as a default or restructuring, occurs with respect to any of the underlying reference obligations, the protection seller must pay the protection buyer the loss on those credits.

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

The use of CDX, like all other swap agreements, is subject to certain risks, including the risk that the fund’s counterparty will default on its obligations. If such a default were to occur, any contractual remedies that the fund might have may be subject to applicable bankruptcy laws, which could delay or limit the fund’s recovery. Thus, if the fund’s counterparty to a CDX transaction defaults on its obligation to make payments thereunder, the fund may lose such payments altogether or collect only a portion thereof, which collection could involve substantial costs or delays. Certain CDX transactions are 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, when the fund invests in a CDX as a protection seller, the fund will be indirectly exposed to the creditworthiness of issuers of the underlying reference obligations in the index. If the investment adviser to the fund does not correctly evaluate the creditworthiness of issuers of the underlying instruments on which the CDX is based, the investment could result in losses to the fund.

Pursuant to regulations and published positions of the U.S. Securities and Exchange Commission, the fund’s obligations under a CDX agreement will be accrued daily and, where applicable, offset against any amounts owing to the fund. In connection with CDX transactions

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in which the fund acts as protection buyer, the fund will segregate liquid assets with a value at least equal to the fund’s exposure (i.e., any accrued but unpaid net amounts owed by the fund to any counterparty), on a marked-to-market basis, less the value of any posted margin. When the fund acts as protection seller, the fund will segregate liquid assets with a value at least equal to the full notional amount of the swap, less the value of any posted margin. Such segregation is intended to ensure that the fund has assets available to satisfy its obligations with respect to CDX transactions and to limit any potential leveraging of the fund’s portfolio. However, segregation of liquid assets will not limit the fund’s exposure to loss. To maintain this required margin, the fund may also have to sell portfolio securities at disadvantageous prices, and the earmarking of liquid assets will have the effect of limiting the fund’s ability to otherwise invest those assets in other securities or instruments.

Currency transactions — The fund may enter into currency transactions on a spot (i.e., cash) basis at the prevailing rate in the currency exchange market to provide for the purchase or sale of a currency needed to purchase a security denominated in such currency. In addition, the fund may enter into forward currency contracts to protect against changes in currency exchange rates, to increase exposure to a particular foreign currency, to shift exposure to currency fluctuations from one currency to another or to seek to increase returns. A forward currency contract is an obligation to purchase or sell a specific currency at a future date, which may be any fixed number of days from the date of the contract agreed upon by the parties, at a price set at the time of the contract. Some forward currency contracts, called non-deliverable forwards or NDFs, do not call for physical delivery of the currency and are instead settled through cash payments. Forward currency contracts are typically privately negotiated and traded in the interbank market between large commercial banks (or other currency traders) and their customers. Although forward contracts entered into by the fund will typically involve the purchase or sale of a currency against the U.S. dollar, the fund also may purchase or sell a non-U.S. currency against another non-U.S. currency.

Currency exchange rates generally are determined by forces of supply and demand in the foreign exchange markets and the relative merits of investment in different countries as viewed from an international perspective. Currency exchange rates, as well as foreign currency transactions, can also be affected unpredictably by intervention by U.S. or foreign governments or central banks or by currency controls or political developments in the United States or abroad. Such intervention or other events could prevent the fund from entering into foreign currency transactions, force the fund to exit such transactions at an unfavorable time or price or result in penalties to the fund, any of which may result in losses to the fund.

Generally, the fund will not attempt to protect against all potential changes in exchange rates and the use of forward contracts does not eliminate the risk of fluctuations in the prices of the underlying securities. If the value of the underlying securities declines or the amount of the fund’s commitment increases because of changes in exchange rates, the fund may need to provide additional cash or securities to satisfy its commitment under the forward contract. The fund is also subject to the risk that it may be delayed or prevented from obtaining payments owed to it under the forward contract as a result of the insolvency or bankruptcy of the counterparty with which it entered into the forward contract or the failure of the counterparty to comply with the terms of the contract.

The realization of gains or losses on foreign currency transactions will usually be a function of the investment adviser’s ability to accurately estimate currency market movements. Entering into forward currency transactions may change the fund’s exposure to currency exchange rates and could result in losses to the fund if currencies do not perform as expected by the fund’s investment adviser. For example, if the fund’s investment adviser increases the fund’s exposure to a foreign currency using forward contracts and that foreign currency’s value declines, the fund may incur a loss. In addition, while entering into forward currency transactions could minimize the risk of loss due to a decline in the value of the hedged currency, it could also limit any potential gain that may result from an increase in the value of the currency. See also the “Derivatives” section under "Description of certain securities,

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investment techniques and risks" for a general description of investment techniques and risks relating to derivatives, including certain currency forwards.

Forward currency contracts may give rise to leverage, or exposure to potential gains and losses in excess of the initial amount invested. Leverage magnifies gains and losses and could cause the fund to be subject to more volatility than if it had not been leveraged, thereby resulting in a heightened risk of loss. The fund will segregate liquid assets that will be marked to market daily to meet its forward contract commitments to the extent required by the U.S. Securities and Exchange Commission.

Forward currency transactions also may affect the character and timing of income, gain, or loss recognized by the fund for U.S. tax purposes. The use of forward currency contracts could result in the application of the mark-to-market provisions of the Internal Revenue Code and may cause an increase (or decrease) in the amount of taxable dividends paid by the fund.

Real estate investment trusts — Real estate investment trusts ("REITs"), which primarily invest in real estate or real estate-related loans, may issue equity or debt securities. Equity REITs own real estate properties, while mortgage REITs hold construction, development and/or long-term mortgage loans. The values of REITs may be affected by changes in the value of the underlying property of the trusts, the creditworthiness of the issuer, property taxes, interest rates, tax laws and regulatory requirements, such as those relating to the environment. Both types of REITs are dependent upon management skill and the cash flows generated by their holdings, the real estate market in general and the possibility of failing to qualify for any applicable pass-through tax treatment or failing to maintain any applicable exemptive status afforded under relevant laws.

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 may enter into roll transactions, such as a mortgage dollar roll where the fund sells mortgage-backed securities for delivery in the current month and simultaneously contracts to repurchase substantially similar (same type, coupon, and maturity) securities on a specified future date, at a pre-determined price. During the period between the sale and repurchase (the “roll period”), the fund forgoes principal and interest paid on the mortgage-backed securities. The fund is compensated by the difference between the current sales price and the lower forward price for the future purchase (often referred to as the “drop”), if any, as well as by the interest earned on the cash proceeds of the initial sale. The fund could suffer a loss if the contracting party fails to perform the future transaction and the fund is therefore unable to buy back the mortgage-backed securities it initially sold. The fund also takes the risk that the mortgage-backed securities that it repurchases at a later date will have less favorable market characteristics than the securities originally sold (e.g., greater prepayment risk). These transactions are accounted for as purchase and sale transactions, which may increase the fund’s portfolio turnover rate.

With to be announced (TBA) transactions, the particular securities (i.e., specified mortgage pools) to be delivered or received are not identified at the trade date, but are “to be announced” at a later settlement date. However, securities to be delivered must meet specified criteria, including face value, coupon rate and maturity, and be within industry-accepted “good delivery” standards.

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

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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.

Loan assignments and participations — The fund may invest in loans or other forms of indebtedness that represent interests in amounts owed by corporations or other borrowers (collectively “borrowers”). The investment adviser defines debt securities to include investments in loans, such as loan assignments and participations. Loans may be originated by the borrower in order to address its working capital needs, as a result of a reorganization of the borrower’s assets and liabilities (recapitalizations), to merge with or acquire another company (mergers and acquisitions), to take control of another company (leveraged buy-outs), to provide temporary financing (bridge loans), or for other corporate purposes. Most corporate loans are variable or floating rate obligations.

Some loans may be secured in whole or in part by assets or other collateral. In other cases, loans may be unsecured or may become undersecured by declines in the value of assets or other collateral securing such loan. The greater the value of the assets securing the loan the more the lender is protected against loss in the case of nonpayment of principal or interest. Loans made to highly leveraged borrowers may be especially vulnerable to adverse changes in economic or market conditions and may involve a greater risk of default.

Some loans may represent revolving credit facilities or delayed funding loans, in which a lender agrees to make loans up to a maximum amount upon demand by the borrower during a specified term. These commitments may have the effect of requiring the fund to increase its investment in a company at a time when it might not otherwise decide to do so (including at a time when the company’s financial condition makes it unlikely that such amounts will be repaid). To the extent that the fund is committed to advance additional funds, the fund will segregate assets determined to be liquid in an amount sufficient to meet such commitments.

Some loans may represent debtor-in-possession financings (commonly known as “DIP financings”). DIP financings are arranged when an entity seeks the protections of the bankruptcy court under Chapter 11 of the U.S. Bankruptcy Code. These financings allow the entity to continue its business operations while reorganizing under Chapter 11. Such financings constitute senior liens on unencumbered collateral (i.e., collateral not subject to other creditors’ claims). There is a risk that the entity will not emerge from Chapter 11 and will be forced to liquidate its assets under Chapter 7 of the U.S. Bankruptcy Code. In the event of liquidation, the fund’s only recourse will be against the collateral securing the DIP financing.

The investment adviser generally makes investment decisions based on publicly available information, but may rely on non-public information if necessary. Borrowers may offer to provide lenders with material, non-public information regarding a specific loan or the borrower in general. The investment adviser generally chooses not to receive this information. As a result, the investment adviser may be at a disadvantage compared to other investors that may receive such information. The investment adviser’s decision not to receive material, non-public information may impact the investment adviser’s ability to assess a borrower’s requests for amendments or waivers of provisions in the loan agreement. However, the investment adviser may on a case-by-case basis decide to receive such information when it deems prudent. In these situations the investment adviser may be restricted from trading the loan or buying or selling other debt and equity securities of the borrower while it is in possession of such material, non-public information, even if such loan or other security is declining in value.

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The fund normally acquires loan obligations through an assignment from another lender, but also may acquire loan obligations by purchasing participation interests from lenders or other holders of the interests. When the fund purchases assignments, it acquires direct contractual rights against the borrower on the loan. The fund acquires the right to receive principal and interest payments directly from the borrower and to enforce its rights as a lender directly against the borrower. However, because assignments are arranged through private negotiations between potential assignees and potential assignors, the rights and obligations acquired by a fund as the purchaser of an assignment may differ from, and be more limited than, those held by the assigning lender. Loan assignments are often administered by a financial institution that acts as agent for the holders of the loan, and the fund may be required to receive approval from the agent and/or borrower prior to the purchase of a loan. Risks may also arise due to the inability of the agent to meet its obligations under the loan agreement.

Loan participations are loans or other direct debt instruments that are interests in amounts owed by the borrower to another party. They may represent amounts owed to lenders or lending syndicates, to suppliers of goods or services, or to other parties. The fund will have the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the participation and only upon receipt by the lender of the payments from the borrower. In connection with purchasing participations, the fund generally will have no right to enforce compliance by the borrower with the terms of the loan agreement relating to the loan, nor any rights of set-off against the borrower. In addition, the fund may not directly benefit from any collateral supporting the loan in which it has purchased the participation and the fund will have to rely on the agent bank or other financial intermediary to apply appropriate credit remedies. As a result, the fund will be subject to the credit risk of both the borrower and the lender that is selling the participation. In the event of the insolvency of the lender selling a participation, a fund may be treated as a general creditor of the lender and may not benefit from any set-off between the lender and the borrower.

Loan assignments and participations are generally subject to legal or contractual restrictions on resale and are not currently listed on any securities exchange or automatic quotation system. Risks may arise due to delayed settlements of loan assignments and participations. The investment adviser expects that most loan assignments and participations purchased for the fund will trade on a secondary market. However, although secondary markets for investments in loans are growing among institutional investors, a limited number of investors may be interested in a specific loan. It is possible that loan participations, in particular, could be sold only to a limited number of institutional investors. If there is no active secondary market for a particular loan, it may be difficult for the investment adviser to sell the fund’s interest in such loan at a price that is acceptable to it and to obtain pricing information on such loan.

Investments in loan participations and assignments present the possibility that the fund could be held liable as a co-lender under emerging legal theories of lender liability. In addition, if the loan is foreclosed, the fund could be part owner of any collateral and could bear the costs and liabilities of owning and disposing of the collateral. In addition, some loan participations and assignments may not be rated by major rating agencies and may not be protected by securities laws.

Variable and floating rate obligations — The interest rates payable on certain securities and other instruments in which the fund may invest may not be fixed but may fluctuate based upon changes in market interest rates or credit ratings. Variable and floating rate obligations bear coupon rates that are adjusted at designated intervals, based on the then current market interest rates or credit ratings. The rate adjustment features tend to limit the extent to which the market value of the obligations will fluctuate. When the fund holds variable or floating rate securities, a decrease in market interest rates will adversely affect the income received from such securities and the net asset value of the fund’s shares.

The London Interbank Offered Rate (“LIBOR”) is one of the most widely used interest rate benchmarks and is intended to represent the rate at which contributing banks may obtain short-term borrowings

American Funds Emerging Markets Bond Fund — Page 20






from each other in the London interbank market. On July 27, 2017, the U.K. Financial Conduct Authority (“FCA”), which regulates LIBOR, announced that the FCA will no longer persuade or compel banks to submit rates for the calculation of LIBOR after 2021. As a result, post-2021, LIBOR may no longer be available or may no longer be deemed an appropriate reference rate upon which to determine the interest rate on certain loans, bonds, derivatives and other instruments in the fund’s portfolio. In light of this eventuality, public and private sector industry initiatives are currently underway to identify new or alternative reference rates to be used in place of LIBOR. There is no assurance that the composition or characteristics of any such alternative reference rate will be similar to or produce the same value or economic equivalence as LIBOR or that instruments using an alternative rate will have the same volume or liquidity. This, in turn, may affect the value or return on certain of the fund’s investments, result in costs incurred in connection with closing out positions and entering into new trades and reduce the effectiveness of related fund transactions such as hedges. Since the usefulness of LIBOR as a benchmark could deteriorate during the transition period, these effects could occur prior to the end of 2021. These risks may also apply with respect to potential changes in connection with other interbank offering rates (e.g., Euribor) and other indices, rates and values that may be used as “benchmarks” and are the subject of recent regulatory reform.

Inverse floating rate notes — The fund may invest in inverse floating rate notes (a type of derivative instrument). These notes have rates that move in the opposite direction of prevailing interest rates. A change in prevailing interest rates will often result in a greater change in these instruments’ interest rates. As a result, these instruments may have a greater degree of volatility than other types of interest-bearing securities.

Equity securities — Equity securities represent an ownership position in a company. Equity securities held by the fund typically consist of common stocks. The prices of equity securities fluctuate based on, among other things, events specific to their issuers and market, economic and other conditions. For example, prices of these securities can be affected by financial contracts held by the issuer or third parties (such as derivatives) relating to the security or other assets or indices. Holders of equity securities are not creditors of the issuer. If an issuer liquidates, holders of equity securities are entitled to their pro rata share of the issuer’s assets, if any, after creditors (including the holders of fixed income securities and senior equity securities) are paid.

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

Investing in smaller capitalization stocks — The fund may invest in the stocks of smaller capitalization companies. Investing in smaller capitalization stocks can involve greater risk than is customarily associated with investing in stocks of larger, more established companies. For example, smaller companies often have limited product lines, limited operating histories, limited markets or financial resources, may be dependent on one or a few key persons for management and can be more susceptible to losses. Also, their securities may be less liquid or illiquid (and therefore have to be sold at a discount from current prices or sold in small lots over an extended period of time), may be followed by fewer investment research analysts and may be subject to wider price swings, thus creating a greater chance of loss than securities of larger capitalization companies.

Warrants and rights — Warrants and rights may be acquired by the fund in connection with other securities or separately. Warrants generally entitle, but do not obligate, their holder to purchase other equity or fixed income securities at a specified price at a later date. Rights are similar to warrants but typically have a shorter duration and are issued by a company to existing holders of its stock to provide those holders the right to purchase additional shares of stock at a later date. Warrants and rights do not carry with them the right to dividends or voting rights with respect to the securities that they entitle their holder to purchase, and they do not represent any rights in the assets of the issuing company.

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Additionally, a warrant or right ceases to have value if it is not exercised prior to its expiration date. As a result, warrants and rights may be considered more speculative than certain other types of investments. Changes in the value of a warrant or right do not necessarily correspond to changes in the value of its underlying security. The price of a warrant or right may be more volatile than the price of its underlying security, and they therefore present greater potential for capital appreciation and capital loss. The effective price paid for warrants or rights added to the subscription price of the related security may exceed the value of the subscribed security’s market price, such as when there is no movement in the price of the underlying security. The market for warrants or rights may be very limited and it may be difficult to sell them promptly at an acceptable price.

Reinsurance related notes and bonds — The fund may invest in reinsurance related notes and bonds. These instruments, which are typically issued by special purpose reinsurance companies, transfer an element of insurance risk to the note or bond holders. For example, such a note or bond could provide that the reinsurance company would not be required to repay all or a portion of the principal value of the note or bond if losses due to a catastrophic event under the policy (such as a major hurricane) exceed certain dollar thresholds. Consequently, the fund may lose the entire amount of its investment in such bonds or notes if such an event occurs and losses exceed certain dollar thresholds. In this instance, investors would have no recourse against the insurance company. These instruments may be issued with fixed or variable interest rates and rated in a variety of credit quality categories by the rating agencies.

Repurchase agreements — The fund may enter into repurchase agreements, or “repos”, 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 repo may be considered a loan by the fund that is collateralized by the security purchased. Repos permit the fund to maintain liquidity and earn income over periods of time as short as overnight.

The seller must maintain with a custodian collateral equal to at least the repurchase price, including accrued interest. In tri-party repos, a third party custodian, called a clearing bank, facilitates repo clearing and settlement, including by providing collateral management services. However, as an alternative to tri-party repos, the fund could enter into bilateral repos, where the parties themselves are responsible for settling transactions.

The fund will only enter into repos involving securities of the type in which it could otherwise invest. If the seller under the repo defaults, the fund may incur a loss if the value of the collateral securing the repo has declined and may incur disposition costs and delays 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.

Cash and cash equivalents — The fund may hold cash or invest in cash equivalents. Cash equivalents include, but are not limited to: (a) shares of money market or similar funds managed by the investment adviser or its affiliates; (b) shares of other money market funds; (c) commercial paper; (d) 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; (e) savings association and savings bank obligations (for example, bank notes and certificates of deposit issued by savings banks or savings associations); (f) securities of the U.S. government, its agencies or instrumentalities that mature, or that may be redeemed, in one year or less; and (g) higher quality corporate bonds and notes that mature, or that may be redeemed, in one year or less.

Commercial paper — The fund may purchase commercial paper. Commercial paper refers to short-term promissory notes issued by a corporation to finance its current operations. Such securities normally have maturities of thirteen months or less and, though commercial paper is often unsecured,

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commercial paper may be supported by letters of credit, surety bonds or other forms of collateral. Maturing commercial paper issuances are usually repaid by the issuer from the proceeds of new commercial paper issuances. As a result, investment in commercial paper is subject to rollover risk, or the risk that the issuer cannot issue enough new commercial paper to satisfy its outstanding commercial paper. Like all fixed income securities, commercial paper prices are susceptible to fluctuations in interest rates. If interest rates rise, commercial paper prices will decline and vice versa. However, the short-term nature of a commercial paper investment makes it less susceptible to volatility than many other fixed income securities because interest rate risk typically increases as maturity lengths increase. Commercial paper tends to yield smaller returns than longer-term corporate debt because securities with shorter maturities typically have lower effective yields than those with longer maturities. As with all fixed income securities, there is a chance that the issuer will default on its commercial paper obligations and commercial paper may become illiquid or suffer from reduced liquidity in these or other situations.

Commercial paper in which the fund may invest includes commercial paper issued in reliance on the exemption from registration afforded by Section 4(a)(2) of the 1933 Act. Section 4(a)(2) commercial paper has substantially the same price and liquidity characteristics as commercial paper generally, except that the resale of Section 4(a)(2) commercial paper is limited to institutional investors who agree that they are purchasing the paper for investment purposes and not with a view to public distribution. Technically, such a restriction on resale renders Section 4(a)(2) commercial paper a restricted security under the 1933 Act. In practice, however, Section 4(a)(2) commercial paper typically can be resold as easily as any other unrestricted security held by the fund. Accordingly, Section 4(a)(2) commercial paper has been generally determined to be liquid under procedures adopted by the fund’s board of trustees.

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. Restricted securities held by the fund are often eligible for resale under Rule 144A, an exemption under the 1933 Act allowing for resales to “Qualified Institutional Buyers.” 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.

Some fund holdings (including some restricted securities) may be deemed illiquid if the fund expects that a reasonable portion of the holding cannot be sold in seven calendar days or less without the sale significantly changing the market value of the investment. The determination of whether a holding is considered illiquid is made by the fund’s adviser under a liquidity risk management program adopted by the fund’s board and administered by the fund’s adviser. The fund may incur significant additional costs in disposing of illiquid securities.

Maturity — There are no restrictions on the maturity composition of the portfolio. The fund invests in debt securities with a wide range of maturities. Under normal market conditions, longer term securities yield more than shorter term securities, but are subject to greater price fluctuations.

Nondiversification — The fund is a nondiversified investment company which allows the fund to invest a greater percentage of its assets in any one issuer than a diversified investment company. For the fund to be considered a “diversified“ investment company under the Investment Company Act of 1940, as amended, the fund with respect to 75% of its total assets, would be required to limit its investment in any one issuer (other than the U.S. government) to 5% of the market value of the total assets of the fund or to 10% of the outstanding voting securities of such issuer. However, such a diversification limitation would reduce the extent to which the fund could concentrate its investments in securities, for example, of governmental issuers outside the United States, which are generally

American Funds Emerging Markets Bond Fund — Page 23






considered to be of higher credit quality than are securities of private issuers domiciled outside the United States. Accordingly, such a diversification limitation might increase the fund's investment risk. Although the fund is nondiversified, the fund intends to comply with the diversification and other requirements of the U.S. Internal Revenue Code of 1986, as amended, applicable to regulated investment companies so that the fund will not be subject to U.S. taxes on the net investment income and net capital gains that it distributes to its shareholders. (See “Taxes and Distributions.”)

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Cybersecurity risks — With the increased use of technologies such as the Internet to conduct business, the fund has become potentially more susceptible to operational and information security risks through breaches in cybersecurity. In general, a breach in cybersecurity can result from either a deliberate attack or an unintentional event. Cybersecurity breaches may involve, among other things, infection by computer viruses or other malicious software code or unauthorized access to the fund’s digital information systems, networks or devices through “hacking” or other means, in each case for the purpose of misappropriating assets or sensitive information (including, for example, personal shareholder information), corrupting data or causing operational disruption or failures in the physical infrastructure or operating systems that support the fund. Cybersecurity risks also include the risk of losses of service resulting from external attacks that do not require unauthorized access to the fund’s systems, networks or devices. For example, denial-of-service attacks on the investment adviser’s or an affiliate’s website could effectively render the fund’s network services unavailable to fund shareholders and other intended end-users. Any such cybersecurity breaches or losses of service may cause the fund to lose proprietary information, suffer data corruption or lose operational capacity, which, in turn, could cause the fund to incur regulatory penalties, reputational damage, additional compliance costs associated with corrective measures and/or financial loss. While the fund and its investment adviser have established business continuity plans and risk management systems designed to prevent or reduce the impact of cybersecurity attacks, there are inherent limitations in such plans and systems due in part to the ever-changing nature of technology and cybersecurity attack tactics, and there is a possibility that certain risks have not been adequately identified or prepared for.

In addition, cybersecurity failures by or breaches of the fund’s third-party service providers (including, but not limited to, the fund’s investment adviser, transfer agent, custodian, administrators and other financial intermediaries) may disrupt the business operations of the service providers and of the fund, potentially resulting in financial losses, the inability of fund shareholders to transact business with the fund and of the fund to process transactions, the inability of the fund to calculate its net asset value, violations of applicable privacy and other laws, rules and regulations, regulatory fines, penalties, reputational damage, reimbursement or other compensatory costs and/or additional compliance costs associated with implementation of any corrective measures. The fund and its shareholders could be negatively impacted as a result of any such cybersecurity breaches, and there can be no assurance that the fund will not suffer losses relating to cybersecurity attacks or other informational security breaches affecting the fund’s third-party service providers in the future, particularly as the fund cannot control any cybersecurity plans or systems implemented by such service providers.

Cybersecurity risks may also impact issuers of securities in which the fund invests, which may cause the fund’s investments in such issuers to lose value.

Interfund borrowing and lending — Pursuant to an exemptive order issued by the U.S. Securities and Exchange Commission, the fund may lend money to, and borrow money from, other funds advised by Capital Research and Management Company or its affiliates. The fund will borrow through the program only when the costs are equal to or lower than the costs of bank loans. The fund will lend through the program only when the returns are higher than those available from an investment in repurchase agreements. Interfund loans and borrowings normally extend overnight, but can have a maximum duration of seven days. Loans may be called on one day's notice. The fund may have to borrow from a bank at a higher interest rate if an interfund loan is called or not renewed. Any delay in repayment to a lending fund could result in a lost investment opportunity or additional borrowing costs.

* * * * * *

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. Higher portfolio turnover may involve correspondingly greater transaction costs

American Funds Emerging Markets Bond Fund — Page 25






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.

The fund’s portfolio turnover rates for the fiscal years ended December 31, 2019 and 2018 were 54% and 38%, respectively. The increase in turnover was due to increased trading activity 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 the last three fiscal years and for the fiscal period ended December 31, 2016.

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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:

a. Borrow money;

b. Issue senior securities;

c. Underwrite the securities of other issuers;

d. Purchase or sell real estate or commodities;

e. Make loans; or

f. 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). The percentage limitations in this policy are considered at the time of borrowing and thereafter.

For purposes of fundamental policies 1a and 1e, the fund may borrow money from, or loan money to, other funds managed by Capital Research and Management Company or its affiliates to the extent permitted by applicable law and an exemptive order issued by the SEC.

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 derivatives, 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 (in accordance with applicable SEC or SEC staff guidance), 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. For purposes of fundamental policy 1f, the fund considers the sovereign debt of each country as one separate 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.

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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.

American Funds Emerging Markets Bond Fund — Page 29









Name, year of birth and position with fund (year first elected as a trustee2) Principal
occupation(s)
during the
past five years Number of
portfolios
in fund
complex
overseen
by trustee Other directorships3 held
by trustee during the past five years Other relevant experience
William H. Baribault, 1945
Trustee (2015) Chairman of the Board and CEO, Oakwood Advisors (private investment and consulting); former CEO and President, Richard Nixon Foundation 89 General Finance Corporation
· 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, 1947
Trustee (2015) Professor of Marketing and former Dean, Marshall School of Business, University of Southern California 99 Mercury General Corporation
· Service as chief executive officer for multiple companies

· Corporate board experience

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

· MBA

Nariman Farvardin, 1956
Trustee (2018) President, Stevens Institute of Technology 86 None
· Senior management experience, educational institution

· Corporate board experience

· Professor, electrical and computer engineering

· Service on advisory boards and councils for educational, nonprofit and governmental organizations

· MS, PhD, electrical engineering

American Funds Emerging Markets Bond Fund — Page 30







Name, year of birth and position with fund (year first elected as a trustee2) Principal
occupation(s)
during the
past five years Number of
portfolios
in fund
complex
overseen
by trustee Other directorships3 held
by trustee during the past five years Other relevant experience
Mary Davis Holt, 1950
Trustee (2015-2016; 2017) Principal, Mary Davis Holt Enterprises, LLC (leadership development consulting); former Partner, Flynn Heath Holt Leadership, LLC (leadership consulting); former COO, Time Life Inc. (1993–2003) 86 None
· Service as chief operations officer, global media company

· Senior corporate management experience

· Corporate board experience

· Service on advisory and trustee boards for educational, business and non-profit organizations

· MBA

R. Clark
Hooper, 1946
Trustee

(2015)

Private investor 89 Former director of The Swiss Helvetia Fund, Inc. (until 2016)
· Senior regulatory and management experience, National Association of Securities Dealers (now FINRA)

· Service on trustee boards for charitable, educational and nonprofit organizations

American Funds Emerging Markets Bond Fund — Page 31







Name, year of birth and position with fund (year first elected as a trustee2) Principal
occupation(s)
during the
past five years Number of
portfolios
in fund
complex
overseen
by trustee Other directorships3 held
by trustee during the past five years Other relevant experience
Merit E. Janow, 1958
Trustee (2015) Dean and Professor, Columbia University, School of International and Public Affairs 88
Mastercard Incorporated; Trimble Inc.

Former director of The NASDAQ Stock Market LLC (until 2016)

· 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

· JD

Margaret Spellings, 1957
Chairman of the Board (Independent and Non-Executive) (2015) President and CEO, Texas 2036; former President, Margaret Spellings & Company (public policy and strategic consulting); former President, The University of North Carolina; former President, George W. Bush Foundation 90 Former director of ClubCorp Holdings, Inc. (until 2017)
· Former U.S. Secretary of Education, U.S. Department of Education

· 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

American Funds Emerging Markets Bond Fund — Page 32







Name, year of birth and position with fund (year first elected as a trustee2) Principal
occupation(s)
during the
past five years Number of
portfolios
in fund
complex
overseen
by trustee Other directorships3 held
by trustee during the past five years Other relevant experience
Alexandra Trower, 1964
Trustee (2018) Executive Vice President, Global Communications and Corporate Officer, The Estée Lauder Companies 85 None
· Service on trustee boards for charitable and nonprofit organizations

· Senior corporate management experience

· Branding

Paul S. Williams, 1959
Trustee (2020) Former Partner/Managing Director, Major, Lindsey & Africa (executive recruiting firm) 85 Corporate Director, Compass Minerals, Inc. (producer of salt and specialty fertilizers); former Corporate Director, State Auto Financial Corp. (property and casualty insurance company); former Corporate Director, Bob Evans Farms, Inc. (restaurant company); former Corporate Director, Essendant, Inc. (business products wholesaler)
· Senior corporate management experience

· Corporate board experience

· Corporate governance experience

· Service on trustee boards for charitable and educational nonprofit organizations

· Securities law expertise

· JD

American Funds Emerging Markets Bond Fund — Page 33








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, year of birth
and position with fund
(year first elected
as a trustee/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
in fund
complex
overseen
by trustee Other directorships3
held by trustee
during the
past five years
Michael C. Gitlin, 1970
Trustee

(2015)

Vice Chairman and Director, Capital Research and Management Company; Partner – Capital Fixed Income Investors, Capital Research and Management Company; Director, The Capital Group Companies, Inc.*; served as Head of Fixed Income at a large investment management firm prior to joining Capital Research and Management Company in 2015 85 None
Karl J. Zeile, 1966
Trustee

(2019)

Partner – Capital Fixed Income Investors, Capital Research and Management Company 20 None
American Funds Emerging Markets Bond Fund — Page 34






Other officers5


Name, year of birth
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
Robert H. Neithart, 1965
President (2015) Partner – Capital Fixed Income Investors, Capital Research and Management Company; Partner – Capital Fixed Income Investors, Capital Bank and Trust Company*; Chairman of the Board, Capital Strategy Research, Inc.*
Kristine M. Nishiyama, 1970
Executive Vice President (2015) Senior Vice President and Senior Counsel – Fund Business Management Group, Capital Research and Management Company; Chair, Senior Vice President, General Counsel and Director, Capital Bank and Trust Company*
Luis Freitas de Oliveira, 1967
Senior Vice President (2018) Partner - Capital Fixed Income Investors, Capital Bank and Trust Company*; Partner – Capital Fixed Income Investors, Capital International Sárl*; Chairman and Corporate Manager, Capital International Sárl*
Kirstie Spence, 1973
Senior Vice President (2015) Partner - Capital Fixed Income Investors, Capital International Limited*; Director, Capital Research Company*; Vice President and Director, Capital International Limited*
Steven I. Koszalka, 1964
Secretary (2015) Vice President – Fund Business Management Group, Capital Research and Management Company
Brian C. Janssen, 1972
Treasurer (2015) Vice President – Investment Operations, Capital Research and Management Company
Jane Y. Chung, 1974
Assistant Secretary (2015) Associate – Fund Business Management Group, Capital Research and Management Company
Sandra Chuon, 1972
Assistant Treasurer (2019) Assistant Vice President – Investment Operations, Capital Research and Management Company
Gregory F. Niland, 1971
Assistant Treasurer (2015) Vice President - Investment Operations, Capital Research and Management Company
* Company affiliated with Capital Research and Management Company.

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

2 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 trustees and/or officers listed,with the exception of Luis Freitas de Oliveira, 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.

American Funds Emerging Markets Bond Fund — Page 35








Fund shares owned by trustees as of December 31, 2019:


Name Dollar range1,2
of fund
shares owned Aggregate
dollar range1
of shares
owned in
all funds
in the
American Funds
family overseen
by trustee Dollar
range1,2 of
independent
trustees
deferred compensation3 allocated
to fund Aggregate
dollar
range1,2 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 Over $100,000
James G. Ellis None Over $100,000 N/A N/A
Nariman Farvardin None Over $100,000 N/A Over $100,000
Mary Davis Holt None Over $100,000 N/A N/A
R. Clark Hooper None Over $100,000 N/A Over $100,000
Merit E. Janow None Over $100,000 N/A N/A
Margaret Spellings None Over $100,000 N/A Over $100,000
Alexandra Trower None Over $100,000 N/A Over $100,000
Paul S. Williams4 N/A Over $100,000 N/A N/A

Name Dollar range1,2
of fund
shares owned Aggregate
dollar range1
of shares
owned in
all funds
in the
American Funds
family overseen
by trustee
Interested trustees
Michael C. Gitlin None Over $100,000
Karl J. Zeile $1 – $10,000 Over $100,000

1 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.

2 N/A indicates that the listed individual, as of December 31, 2019, 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.

3 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.

4 Mr. Williams was elected to the board effective January 2, 2020. Information is as of January 31, 2020.

American Funds Emerging Markets Bond Fund — Page 36








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 retainer fee 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.

American Funds Emerging Markets Bond Fund — Page 37








Trustee compensation earned during the fiscal year ended December 31, 2019:


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. Baribault2 $378 $398,000
James G. Ellis 388 480,500
Nariman Farvardin2 373 346,200
Mary Davis Holt 378 336,700
R. Clark Hooper2 348 416,175
Merit E. Janow 376 378,000
Laurel B. Mitchell 325 274,252
Margaret Spellings2 396 469,975
Alexandra Trower2 509 301,000
Paul S. Williams
(service began January 2, 2020) N/A N/A
1 Amounts may be deferred by eligible trustees under a nonqualified deferred compensation plan adopted by the fund in 2015. 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 December 31, 2019 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 2019 fiscal year for participating trustees is as follows: William H. Baribault ($64), Nariman Farvardin ($646), R. Clark Hooper ($394), Margaret Spellings ($172) and Alexandra Trower ($1,680). Amounts deferred and accumulated earnings thereon are not funded and are general unsecured liabilities of the fund until paid to the trustees.

Fund organization and the board of trustees — The fund, an open-end, nondiversified management investment company, was organized as a Delaware statutory trust on November 4, 2015. 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, accordingly, do not have the rights of a shareholder, such as the right to vote proxies relating to fund

American Funds Emerging Markets Bond Fund — Page 38






shares. As the legal owner of the fund’s Class 529 shares, Virginia College Savings PlanSM (Virginia529SM) 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, which are comprised of independent board members, none of whom is an “interested person” of the fund within the meaning of the 1940 Act, 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.

American Funds Emerging Markets Bond Fund — Page 39






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, Mary Davis Holt, and Paul S. Williams. 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 five meetings during the 2019 fiscal year.

The fund has a contracts committee comprised of all of its independent board members. 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 2019 fiscal year.

The fund has a nominating and governance committee comprised of Nariman Farvardin, R. Clark Hooper, Merit E. Janow, Margaret Spellings and Alexandra Trower. 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 coordinates annual self-assessments of the board and 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 two meetings during the 2019 fiscal year.

The independent board members of the fund have oversight responsibility for the fund and certain other funds managed by the investment adviser. As part of their oversight responsibility for these funds, each independent board member sits on one of three fund review committees comprised solely of independent board members. The three committees are divided by portfolio type. Each committee functions independently and is not a decision making body. The purpose of the committees is to assist the board of each fund in the oversight of the investment management services provided by the investment adviser. In addition to regularly monitoring and reviewing investment results, investment activities and strategies used to manage the fund’s assets, the committees also receive reports from the investment adviser’s Principal Investment Officers for the funds, portfolio managers and other investment personnel concerning efforts to achieve the fund’s investment objectives. Each committee reports to the full board of the fund.

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 at capitalgroup.com. Proxies are voted by a committee of the appropriate equity investment division of the investment adviser under authority delegated by the funds’ boards. The boards of American Funds have established a Joint Proxy Committee (“JPC”) composed of independent board members from each American Funds board. The

American Funds Emerging Markets Bond Fund — Page 40






JPC’s role is to facilitate appropriate oversight of the proxy voting process and provide valuable input on corporate governance and related matters.

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

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. Certain regulators have granted investment limit relief to the investment adviser and its affiliates, conditioned upon limiting its voting power to specific voting ceilings. To comply with these voting ceilings, the investment adviser will scale back its votes across all funds and clients on a pro-rata basis based on assets. 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 Research and Management Company’s special review procedures).

For proxies of securities managed by a particular equity 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. In cases where a fund is co-managed and a security is held by more than one of the investment adviser’s equity investment divisions, the divisions may develop different voting recommendations for individual ballot proposals. If this occurs, and if permitted by local market conventions, the fund’s position will generally be voted proportionally by divisional holding, according to their respective decisions. Otherwise, the outcome will be determined by the equity investment division or divisions with the larger position in the security as of the record date for the shareholder meeting.

In addition to its proprietary proxy voting, governance and executive compensation research, Capital Research and Management Company may utilize research provided by Institutional Shareholder Services, Glass-Lewis & Co. or other third-party advisory firms on a case-by-case basis. It does not, as a policy, follow the voting recommendations provided by these firms. It periodically assesses the information provided by the advisory firms and reports to the JPC, as appropriate.

From time to time the investment adviser may vote proxies issued by, or on proposals sponsored or publicly supported by (a) a client with substantial assets managed by the investment adviser or its affiliates, (b) an entity with a significant business relationship with Capital Group, or (c) 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

American Funds Emerging Markets Bond Fund — Page 41






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.

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 such year (a) without charge, upon request by calling American Funds Service Company at (800) 421-4225, (b) on the Capital Group website and (c) on the SEC’s website at sec.gov.

The following summary sets forth the general positions of 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 Capital Group 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 or if, in the opinion of the investment adviser, such nominee has not fulfilled his or her fiduciary duty. 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.

American Funds Emerging Markets Bond Fund — Page 42








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 February 1, 2020. 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
FOR THE BENEFIT OF CUSTOMERS
OMNIBUS ACCOUNT
SAINT LOUIS MO RECORD CLASS A 21.14%
CLASS F-3 19.09
CLASS 529-A 11.11


WELLS FARGO CLEARING SERVICES LLC
SPECIAL CUSTODY ACCT FOR THE
EXCLUSIVE BENEFIT OF CUSTOMER
SAINT LOUIS MO RECORD CLASS A 10.51
CLASS C 32.22
CLASS F-1 8.17
CLASS F-2 20.69
CLASS 529-A 5.61
CLASS 529-C 12.39

PERSHING LLC
OMNIBUS ACCOUNT
JERSEY CITY NJ
RECORD CLASS A 9.18
CLASS F-1 8.38
CLASS F-2 20.24
CLASS F-3 10.93
CLASS R-1 70.47
CLASS R-5 30.09

STIFEL NICOLAUS & CO INC
EXCLUSIVE BENEFIT OF CUSTOMERS
OMNIBUS ACCOUNT
SAINT LOUIS MO RECORD CLASS C 6.53




NATIONAL FINANCIAL SERVICES LLC
FOR EXCLUSIVE BEN OF OUR CUSTOMERS
OMNIBUS ACCOUNT
JERSEY CITY NJ RECORD CLASS C 5.02
CLASS F-1 21.21
CLASS F-2 12.37
CLASS F-3 11.23

TD AMERITRADE INC FOR THE
EXCLUSIVE BENEFIT OF OUR CLIENTS
OMNIBUS ACCOUNT
OMAHA NE RECORD CLASS F-1 15.70
CLASS R-3 8.43



CHARLES SCHWAB & CO INC
SPECIAL CUSTODY ACCT FOR EXCLUSIVE
BENEFIT OF CUSTOMERS - RIA ACCT #1
SAN FRANCISCO CA RECORD CLASS F-1 13.97




American Funds Emerging Markets Bond Fund — Page 43







NAME AND ADDRESS OWNERSHIP OWNERSHIP PERCENTAGE
CHARLES SCHWAB & CO INC


SPECIAL CUSTODY ACCT FBO CUSTOMERS #2

SAN FRANCISCO CA

RECORD CLASS F-1 7.07
CLASS F-3 5.61

LPL FINANCIAL
--OMNIBUS CUSTOMER ACCOUNT--
SAN DIEGO CA RECORD CLASS F-1 6.48
CLASS F-2 6.95
CLASS R-2 8.02

UBS WM USA
OMNIBUS ACCOUNT
WEEHAWKEN NJ RECORD CLASS F-2 11.98



SEI PRIVATE TRUST CO
ACCOUNT
OAKS PA RECORD CLASS F-2 5.30



CHARLES SCHWAB & CO INC
OMNIBUS ACCOUNT #3
SAN FRANCISCO CA RECORD CLASS F-3 25.90



THE CAPITAL GROUP COMPANIES
CHARITABLE FOUNDATION
CORPORATE ACCOUNT
IRVINE CA RECORD CLASS F-3 8.01




AMERICAN EXCESS INSURANCE EXCHANGE
RISK RETENTION GROUP
ACCOUNT
S BURLINGTON VT RECORD CLASS F-3 6.99




MORGAN STANLEY SMITH BARNEY LLC
FOR THE BENEFIT OF ITS CUSTOMERS
OMNIBUS ACCOUNT
NEW YORK NY RECORD CLASS 529-A 6.25
CLASS 529-C 14.95



MLPF&S FOR THE SOLE BENEFIT OF
ITS CUSTOMERS
OMNIBUS ACCOUNT
JACKSONVILLE FL RECORD CLASS 529-C 5.82




VCSP/COLLEGEAMERICA
INDIVIDUAL INVESTOR #1
WISE VA RECORD
BENEFICIAL CLASS 529-E 19.43



VCSP/COLLEGEAMERICA
INDIVIDUAL INVESTOR #2
LEWISVILLE TX RECORD
BENEFICIAL CLASS 529-E 19.22



American Funds Emerging Markets Bond Fund — Page 44







NAME AND ADDRESS OWNERSHIP OWNERSHIP PERCENTAGE
VCSP/COLLEGEAMERICA
INDIVIDUAL INVESTOR #3
WISE VA RECORD
BENEFICIAL CLASS 529-E 15.47



VCSP/COLLEGEAMERICA
INDIVIDUAL INVESTOR #4
WISE VA RECORD
BENEFICIAL CLASS 529-E 12.45



CAPITAL RESEARCH & MANAGEMENT CO
CORPORATE ACCOUNT
LOS ANGELES CA RECORD CLASS R-1 23.52
CLASS R-5E 8.71


SOUTH DAKOTA BOARD OF REGENTS
403B ACCOUNT
DENVER CO RECORD
BENEFICIAL CLASS R-1 5.26



PEARSON FOOD SALES COMPANY INC
RETIREMENT PLAN
POMONA CA RECORD CLASS R-2 10.55



RETIREMENT PLAN #1
LAS VEGAS NV BENEFICIAL CLASS R-2 7.51


CM SERVICES INC
401K PLAN
GREENWOOD VLG CO RECORD
BENEFICIAL CLASS R-2 5.79


STONEY HOLLOW TIRE INC
401K PLAN
GREENWOOD VILLAGE CO RECORD
BENEFICIAL CLASS R-2E 90.04


UEP NORTHEAST
401K PLAN
GREENWOOD VLG CO RECORD
BENEFICIAL CLASS R-2E 6.33


CORE FINANCE TEAM SERVICES
DEFINED BENEFIT PLAN
INDIANAPOLIS IN RECORD
BENEFICIAL CLASS R-3 12.99


401K PLAN #1
GOLDEN VALLEY MN BENEFICIAL CLASS R-3 11.82


OCEAN MACHINERY
RETIREMENT PLAN
FORT LAUDERDALE FL RECORD
BENEFICIAL CLASS R-3 7.01



American Funds Emerging Markets Bond Fund — Page 45







NAME AND ADDRESS OWNERSHIP OWNERSHIP PERCENTAGE
DOWNTOWN FAMILY HEALTH CARE


401K PLAN


CHARLOTTESVILLE VA

RECORD
BENEFICIAL CLASS R-3 6.44



RETIREMENT PLAN #2
ROCHESTER NY BENEFICIAL CLASS R-3 5.86


WEABER, INC
401K PLAN
GREENWOOD VLG CO RECORD
BENEFICIAL CLASS R-3 5.28




401K PLAN #2
HGHLNDS RANCH CO BENEFICIAL CLASS R-4 21.09


401K PLAN #3
OAKLAND CA BENEFICIAL CLASS R-4 9.35


401K PLAN #4
HGHLNDS RANCH CO BENEFICIAL CLASS R-4 8.57


401K PLAN #5
PITTSBURGH PA BENEFICIAL CLASS R-4 6.42


DUNHAM ENTERPRISES
401K PLAN #1
POLAND OH RECORD
BENEFICIAL CLASS R-5 14.86



DUNHAM ENTERPRISES
401K PLAN #2
POLAND OH RECORD
BENEFICIAL CLASS R-5 12.10



401K PLAN #6
MADISON CT BENEFICIAL CLASS R-5 11.35


401K PLAN #7
CLEVELAND OH BENEFICIAL CLASS R-5 8.39


LUBATKIN FINANCIAL GROUP
RETIREMENT PLAN
FORT LEE NJ RECORD
BENEFICIAL CLASS R-5 5.55



CE CONTRACTING INC
401K PLAN
GREENWOOD VILLAGE CO RECORD
BENEFICIAL CLASS R-5E 29.63



American Funds Emerging Markets Bond Fund — Page 46







NAME AND ADDRESS OWNERSHIP OWNERSHIP PERCENTAGE
401K PLAN #8


MINNEAPOLIS MN

BENEFICIAL CLASS R-5E 8.51


ADIVO ASSOCIATES
RETIREMENT PLAN
SAN FRANCISCO CA RECORD
BENEFICIAL CLASS R-5E 8.09



MCW DENTISTRY LLC
401K PLAN
FORT MILL SC RECORD
BENEFICIAL CLASS R-5E 6.72



JNL SERIES TRUST AFIS BALANCED
ALLOCATION FUND
ACCOUNT
LANSING MI RECORD CLASS R-6 54.45




JNL SERIES TRUST AFIS GROWTH
ALLOCATION FUND
ACCOUNT
LANSING MI RECORD CLASS R-6 38.98




THE CAPITAL GROUP COMPANIES INC
RETIREMENT PLAN
IRVINE CA RECORD CLASS R-6 6.17


Because Class T and Class 529-T shares are not currently offered to the public, Capital Research and Management Company, the fund’s investment adviser, owns 100% of the fund‘s outstanding Class T and Class 529-T shares.

As of February 1, 2020, the officers and trustees of the fund, as a group, owned beneficially or of record less than 1% of the outstanding shares of the fund.

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

American Funds Emerging Markets Bond Fund — Page 47








Investment adviser — Capital Research and Management Company, the fund’s investment adviser, founded in 1931, maintains research facilities in the United States and abroad (Beijing, Geneva, Hong Kong, London, Los Angeles, Mumbai, New York, San Francisco, Singapore, Tokyo and Washington, D.C.). 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, which is deemed under the Commodity Exchange Act (the “CEA”) to be the operator of the fund, has claimed an exclusion from the definition of the term commodity pool operator under 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, fund assets are managed by a team of portfolio managers. The fund’s portfolio managers will work together to oversee the fund’s entire portfolio.

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 calculated by comparing pretax total investment returns to relevant benchmarks over the most recent one-, three-, five- and eight-year periods, with increasing weight placed on each succeeding measurement period. 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: 50% J.P. Morgan Emerging Markets Bond Index Global Diversified and 50% J.P. Morgan Global Bond Index - Emerging Markets Global Diversified, a custom average consisting of one share class per fund of emerging market hard currency debt funds that disclose investment objectives and strategies comparable to those of the fund and a custom average consisting of one share class per fund of emerging markets local currency debt funds that disclose investment objectives and strategies comparable to those of the fund. 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.

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

American Funds Emerging Markets Bond Fund — Page 48






portions of other mutual funds or accounts advised by Capital Research and Management Company or its affiliates.

The following table reflects information as of December 31, 2019:


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)2 Number
of other
accounts
for which
portfolio
manager
is a manager
(assets of
other accounts
in billions)2,3
Robert H. Neithart $100,001 – $500,000 5 $88.7 6 $4.33 64 $2.92
Luis Freitas De Oliveira $100,001 – $500,000 None 2 $1.69 None
Kirstie Spence $100,001 – $500,000 3 $48.3 4 $2.21 65 $2.92
1 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.

2 Indicates other RIC(s), PIV(s) or other accounts managed by Capital Research and Management Company or its affiliates for which the portfolio manager also has significant day to day management responsibilities. Assets noted are the total net assets of the RIC(s), PIV(s) or other accounts and are not the total assets managed by the individual, which is a substantially lower amount. No RIC, PIV or other account has an advisory fee that is based on the performance of the RIC, PIV or other account, unless otherwise noted.

3 Personal brokerage accounts of portfolio managers and their families are not reflected.

4 The advisory fee of one of these accounts (representing $0.15 billion in total assets) is based partially on its investment results.

5 The advisory fee of one of these accounts (representing $0.15 billion in total assets) is based partially on its investment results.

The fund’s investment adviser has adopted policies and procedures to mitigate material conflicts of interest that may arise in connection with a portfolio manager’s management of the fund, on the one hand, and investments in the other pooled investment vehicles and other accounts, on the other hand, such as material conflicts relating to the allocation of investment opportunities that may be suitable for both the fund and such other accounts.

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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 April 30, 2020, 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 investment adviser is currently reimbursing a portion of the expenses of all the share classes of the fund. These reimbursements will be in effect through at least March 1, 2021. The adviser may elect at its discretion to extend, modify or terminate the reimbursements at that time. For each of the fiscal years ended December 31, 2019, 2018 and 2017, the total expenses reimbursed by the investment adviser were $200,000, $354,000 and $429,000, respectively.

Under the Agreement, the investment adviser receives a management fee at the annual rate of .553% of the average daily net assets of the fund. Management fees are paid monthly and accrued daily.

For the fiscal years ended December 31, 2019, 2018 and 2017, the investment adviser earned from the fund management fees of $4,628,000, $3,714,000 and $994,000, respectively.

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Administrative services — The investment adviser and its affiliates provide certain administrative services for shareholders of the fund’s Class A, C, T, F, R and 529 shares. Administrative services are provided by the investment adviser and its affiliates to help assist third parties providing non-distribution services to fund shareholders. These services include providing in-depth information on the fund and market developments that impact fund investments. Administrative services also include, but are not limited to, coordinating, monitoring 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, T, F, R and 529 shares. The Administrative Agreement will continue in effect until April 30, 2020, 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).

The Administrative Services Agreement between the fund and the investment adviser provides the fund the ability to charge an administrative services fee of .05% for all share classes. The fund’s investment adviser receives an administrative services fee at the annual rate of .03% of the average daily net assets of the fund attributable to each of the share classes (which could be increased as noted above) for its provision of administrative services. Administrative services fees are paid monthly and accrued daily.

During the 2019 fiscal year, administrative services fees were:


Administrative services fee
Class A $70,000
Class C 9,000
Class T —*
Class F-1 5,000
Class F-2 81,000
Class F-3 25,000
Class 529-A 3,000
Class 529-C —*
Class 529-E —*
Class 529-T —*
Class 529-F-1 1,000
Class R-1 —*
Class R-2 —*
Class R-2E —*
Class R-3 1,000
Class R-4 —*
Class R-5E 5,000
Class R-5 —*
Class R-6 65,000
*Amount less than $1,000.

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.

American Funds Emerging Markets Bond Fund — Page 51






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 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 T, F-1, 529-E, 529-T, 529-F-1, R-1, R-2, R-2E, R-3 and R-4 shares.

American Funds Emerging Markets Bond Fund — Page 52








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 2019 $ 142,000 $ 515,000
2018 194,000 716,000
2017 166,000 643,000
Class C 2019 — 85,000
2018 19,000 75,000
2017 — 85,000
Class 529-A 2019 4,000 16,000
2018 4,000 15,000
2017 2,000 9,000
Class 529-C 2019 — 3,000
2018 1,000 3,000
2017 — 2,000
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, F-3, R-5E, R-5 or R-6, no 12b-1 fees are paid from Class F-2, F-3, R-5E, R-5 or 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.

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; however, for Class 529-A shares, the board of trustees has approved payments to the Principal Underwriter of up to .30% of the fund’s average daily net assets, in the aggregate, for paying service- and distribution-related expenses.

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

American Funds Emerging Markets Bond Fund — Page 53






such commissions does not cause the fund to exceed the annual expense limit. After 15 months, these commissions are not recoverable.

Class T and 529-T — For Class T and 529-T shares, the fund may annually expend up to .50% under the applicable Plan; however, the fund’s board of trustees has approved payments to the Principal Underwriter of up to .25% of the fund’s average daily net assets attributable to Class T and 529-T shares for paying service-related expenses.

Other share classes — 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 F-1 0.25 — 0.50
Class 529-C 0.25 0.75 1.00
Class 529-E 0.25 0.25 0.75
Class 529-F-1 0.25 — 0.50
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
1 Amounts in these columns represent the amounts approved by the board of trustees under the applicable Plan.

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

Payment of service fees — For purchases of less than $1 million, payment of service fees to investment dealers generally begins accruing immediately after establishment of an account in Class A, C, 529-A or 529-C shares. For purchases of $1 million or more, payment of service fees to investment dealers generally begins accruing 12 months after establishment of an account in Class A or 529-A shares. Service fees are not paid on certain investments made at net asset value including accounts established by registered representatives and their family members as described in the “Sales charges” section of the prospectus.

American Funds Emerging Markets Bond Fund — Page 54






During the 2019 fiscal year, 12b-1 expenses accrued and paid, and if applicable, unpaid, were:


12b-1 expenses 12b-1 unpaid liability
outstanding
Class A $836,000 $16,000
Class C 225,000 23,000
Class T — —
Class F-1 31,000 3,000
Class 529-A 15,000 1,000
Class 529-C 11,000 1,000
Class 529-E 5,000 —*
Class 529-T — —
Class 529-F-1 — —
Class R-1 1,000 —*
Class R-2 7,000 1,000
Class R-2E 3,000 —*
Class R-3 8,000 2,000
Class R-4 2,000 1,000
*Amount less than $1,000.

American Funds Emerging Markets Bond Fund — Page 55






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 and its shareholders include enabling shareholders to obtain advice and other services from a financial advisor at a reasonable cost, the likelihood that the Plans will stimulate sales of the fund benefiting the investment process through growth or stability of assets and the ability of shareholders to choose among various alternatives in paying for sales and service. 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 Virginia529 — Class 529 shares are offered to certain American Funds by Virginia529 through CollegeAmerica and Class ABLE-A shares are offered to certain American Funds by Virginia529 through ABLEAmerica, a tax-advantaged savings program for individuals with disabilities. As compensation for its oversight and administration of the CollegeAmerica and ABLEAmerica savings plans, Virginia529 is entitled to receive a quarterly fee based on the combined net assets invested in Class 529 shares and Class ABLE-A shares across all American Funds. The quarterly fee is accrued daily and calculated at the annual rate of .09% on the first $20 billion of net assets invested in American Funds Class 529 shares and Class ABLE-A shares, .05% on net assets between $20 billion and $100 billion and .03% on net assets over $100 billion. The fee for any given calendar quarter is accrued and calculated on the basis of average net assets of American Funds Class 529 and Class ABLE-A shares for the last month of the prior calendar quarter. Virginia529 is currently waiving that portion of its fee attributable to Class ABLE-A shares. Such waiver is expected to remain in effect until the earlier of (a) the date on which total net assets invested in Class ABLE-A shares reach $300 million and (b) June 30, 2023.

American Funds Emerging Markets Bond Fund — Page 56








Other compensation to dealers — As of February 2020, the top dealers (or their affiliates) that American Funds Distributors anticipates will receive additional compensation (as described in the prospectus) include:


Advisor Group
FSC Securities Corporation
Royal Alliance Associates, Inc.
SagePoint Financial, Inc.
Woodbury Financial Services, Inc.
American Portfolios Financial Services, Inc.
Ameriprise
Ameriprise Financial Services, Inc.
AXA Advisors
AXA Advisors, LLC
Cambridge

Cambridge Investment Research Advisors, Inc.

Cambridge Investment Research, Inc.
Cetera Financial Group
Cetera Advisor Networks LLC
Cetera Advisors LLC
Cetera Financial Specialists LLC
Cetera Investment Services LLC

First Allied Securities Inc.

Summit Brokerage Services, Inc.

Charles Schwab Network
Charles Schwab & Co., Inc.
Charles Schwab Bank

Commonwealth
Commonwealth Financial Network
D.A. Davidson & Co.
Edward Jones

Fidelity
Fidelity Investments

Fidelity Retirement Network
National Financial Services LLC

Hefren-Tillotson

Hefren-Tillotson, Inc.
HTK

Hornor, Townsend & Kent, 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 Securities LLC
JP Morgan Chase Bank, N.A.
Janney Montgomery Scott
Janney Montgomery Scott LLC

American Funds Emerging Markets Bond Fund — Page 57







Kestra Securities
H. Beck, Inc.
Kestra Investment Services LLC
NFP Advisor Services LLC
Ladenburg Thalmann Group
Investacorp, Inc.
KMS Financial Services, Inc.

Ladenburg, Thalmann & Co., Inc.

Ladenburg Thalmann Asset Management Inc.

Securities America, Inc.
Securities Service Network Inc.
Triad Advisors LLC
Lincoln Network
Lincoln Financial Advisors Corporation

Lincoln Financial Securities Corporation
LPL Group
LPL Financial LLC

Private Advisor Group, LLC
Merrill
Bank of America, NA
Bank of America Private Bank
Merrill Lynch, Pierce, Fenner & Smith Incorporated
MML Investors Services

MassMutual Trust Company FSB
MML Distributors LLC
MML Investors Services, LLC
The MassMutual Trust Company FSB

Morgan Stanley Wealth Management


NMIS
Northwestern Mutual Investment Services, LLC

Park Avenue Securities LLC

PNC Network
PNC Bank, National Association
PNC Investments LLC
Raymond James Group
Raymond James & Associates, Inc.
Raymond James Financial Services Inc.
RBC
RBC Capital Markets LLC
Robert W. Baird
Robert W. Baird & Co, Incorporated
Stifel, Nicolaus & Co

Stifel, Nicolaus & Company, Incorporated
UBS
UBS Financial Services, Inc.
UBS Securities, LLC
American Funds Emerging Markets Bond Fund — Page 58







Voya Financial
Voya Financial Advisors, Inc.
Wells Fargo Network
Wells Fargo Advisors Financial Network, LLC
Wells Fargo Advisors Latin American Channel
Wells Fargo Advisors LLC (WBS)
Wells Fargo Advisors Private Client Group
Wells Fargo Bank, N.A.
Wells Fargo Clearing Services LLC
Wells Fargo Securities, LLC
American Funds Emerging Markets Bond Fund — Page 59








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 execution and settlement, the broker-dealer’s or execution venue’s ability to offer liquidity and anonymity and the trade-off between market impact and opportunity costs. 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 investment adviser and its affiliates negotiate commission rates with broker-dealers based on what they believe is reasonably necessary to obtain best execution. They seek, on an ongoing basis, to determine what the reasonable levels of commission rates for execution services are in the marketplace, taking various considerations into account, including the extent to which a broker-dealer has put its own capital at risk, historical commission rates and commission rates that other institutional investors are paying. 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. Brokerage commissions are only a small part of total execution costs and other factors, such as market impact and speed of execution, contribute significantly to overall transaction costs.

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 investment adviser makes decisions for procurement of research separately and distinctly from decisions on the choice of brokerage and execution services. The receipt of these research 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. 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.

As of January 1, 2019, the investment adviser has undertaken to bear the cost of all third-party investment research services for all client accounts it advises. However, in order to compensate certain U.S. broker-dealers for research consumed, and valued, by the investment adviser’s investment professionals, the investment adviser continues to operate a limited commission sharing arrangement with commissions on equity trades for certain registered investment companies it advises. The

American Funds Emerging Markets Bond Fund — Page 60






investment adviser voluntarily reimburses such registered investment companies for all amounts collected into the commission sharing arrangement. In order to operate the commission sharing arrangement, the investment adviser may cause such registered investment companies to pay commissions in excess of what other broker-dealers might have charged for certain portfolio transactions in recognition of brokerage and/or investment research services. 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 the investment adviser and its affiliates to cause an account to pay a higher commission to a broker-dealer to compensate the broker-dealer or another service provider for certain brokerage and/or investment research services provided to the investment adviser and its affiliates, if the investment adviser and each affiliate makes a good faith determination that such commissions are reasonable in relation to the value of the services provided by such broker-dealer to the investment adviser and its affiliates 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 and its affiliates assess the reasonableness of commissions in light of the total brokerage and investment research services provided to the investment adviser and its affiliates. Further, investment research services may be used by all investment associates of the investment adviser and its affiliates, regardless of whether they advise accounts with trading activity that generates eligible commissions.

In accordance with their internal brokerage allocation procedure, the investment adviser and its affiliates periodically assess the brokerage and investment research services provided by each broker-dealer and each other service provider from which they receive such services. As part of its ongoing relationships, the investment adviser and its affiliates routinely meet with firms to discuss the level and quality of the brokerage and research services provided, as well as the value and cost of such services. In valuing the brokerage and investment research services the investment adviser and its affiliates receive from broker-dealers and other research providers in connection with its good faith determination of reasonableness, the investment adviser and its affiliates take various factors into consideration, including the quantity, quality and usefulness of the services to the investment adviser and its affiliates. Based on this information and applying their judgment, the investment adviser and its affiliates set an annual research budget.

Research analysts and portfolio managers periodically participate in a research poll to determine the usefulness and value of the research provided by individual broker-dealers and research providers. Based on the results of this research poll, the investment adviser and its affiliates may, through commission sharing arrangements with certain broker-dealers, direct a portion of commissions paid to a broker-dealer by the fund and other registered investment companies managed by the investment adviser or its affiliates to be used to compensate the broker-dealer and/or other research providers for research services they provide. While the investment adviser and its affiliates may negotiate commission rates and enter into commission sharing arrangements with certain broker-dealers with the expectation that such broker-dealers will be providing brokerage and research services, none of the investment adviser, any of its affiliates or any of their clients incurs any obligation to any broker-dealer to pay for research by generating trading commissions. The investment adviser and its affiliates negotiate prices for certain research that may be paid through commission sharing arrangements or by themselves with cash.

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 investment division within the adviser and its affiliates 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

American Funds Emerging Markets Bond Fund — Page 61






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 and its affiliates serve as investment adviser for certain accounts that are designed to be substantially similar to another account. This type of account will often generate a large number of relatively small trades when it is rebalanced to its reference fund due to differing cash flows or when the account is initially started up. The investment adviser may not aggregate program trades or electronic list trades executed as part of this process. Non-aggregated trades performed for these accounts will be allocated entirely to that account. This is done only when the investment adviser believes doing so will not have a material impact on the price or quality of other transactions.

The investment adviser currently owns an interest in IEX Group and Luminex Trading and Analytics. The investment adviser may place orders on these or other exchanges or alternative trading systems in which it, or one of its affiliates, has an ownership interest, provided such ownership interest is less than five percent of the total ownership interests in the entity. The investment adviser is subject to the same best execution obligations when trading on any such exchange or alternative trading system.

Purchase and sale transactions may be effected directly among and between certain funds or accounts advised by the investment adviser or its affiliates, including the fund. The investment adviser maintains cross-trade policies and procedures and places a cross-trade only when such a trade is in the best interest of all participating clients and is not prohibited by the participating funds’ or accounts’ investment management agreement or applicable law.

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.

Purchases and sales of futures contracts for the fund will be effected through executing brokers and FCMs that specialize in the types of futures contracts that the fund expects to hold. The investment adviser will use reasonable efforts to choose executing brokers and FCMs capable of providing the services necessary to obtain the most favorable price and execution available. The full range and quality of services available will be considered in making these determinations. The investment adviser will monitor the executing brokers and FCMs used for purchases and sales of futures contracts for their ability to execute trades based on many factors, such as the sizes of the orders, the difficulty of executions, the operational facilities of the firm involved and other factors.

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 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 year ended December 31, 2019.

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

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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 recent fiscal year, the fund did not hold securities of any of its regular broker-dealers.

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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 Capital Group website no earlier than the 10th day after such calendar quarter. In practice, the publicly disclosed portfolio is typically posted on the Capital Group 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 Capital Group 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 Capital Group website.

Certain intermediaries are provided additional information about the fund’s management team, including information on the fund’s portfolio securities they have selected. This information is provided to larger intermediaries that require the information to make the fund available for investment on the firm’s platform. Intermediaries receiving the information are required to keep it confidential and use it only to analyze the fund.

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 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

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obligations and obligations that would prohibit them from trading in securities based on such information. When portfolio holdings information is disclosed other than through the Capital Group 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.

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 Capital Group 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 the close of regular trading on the New York Stock Exchange, normally 4 p.m. New York time, each day the New York Stock Exchange is open. For days on which the New York Stock Exchange publishes in advance that it will close early (e.g., the day before July 4th, the day after Thanksgiving and Christmas Eve), orders received after the planned early close will be entered at the calculated offering price on the following business day. However, if the New York Stock Exchange makes an unscheduled close prior to 4 p.m. New York time, the fund’s share price would still be determined as of 4 p.m. New York time on that business day. 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 U.S. Government 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

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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, 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.

Futures contracts are generally valued at the official settlement price of, or the last reported sale price on, the principal exchange or market on which such instruments are traded, as of the close of business on the day the contracts are being valued or, lacking any sales, at the last available bid price.

Swaps, including both interest rate swaps and positions in credit default swap indices, are valued using market quotations or valuations provided 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 appointed the fund’s investment adviser to make fair valuation determinations, which are directed by 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 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

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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. The valuation committee employs additional fair value procedures to address issues related to equity securities that trade principally in markets outside the United States. Such securities may trade in markets that open and close at different times, reflecting time zone differences. If significant events occur after the close of a market (and before the fund’s net asset values are next determined) which affect the value of equity securities held in the fund’s portfolio, appropriate adjustments from closing market prices may be made to reflect these events. Events of this type could include, for example, earthquakes and other natural disasters or significant price changes in other markets (e.g., U.S. stock markets).

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 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, including the asset diversification test. The asset diversification test requires that at the close of each quarter of the fund’s taxable year that (i) at least 50% of the fund’s assets be invested in cash and cash items, government securities, securities of other funds and other securities which, with respect to any one issuer, represent neither more than 5% of the assets of the fund nor more than 10% of the voting securities of the issuer, and (ii) no more than 25% of the fund’s assets be invested in the securities of any one issuer (other than government securities or the securities of other funds), the securities (other than the securities of other funds) of two or more issuers that the fund controls and are engaged in similar trades or businesses, or the securities of one or more qualified publicly traded partnerships.

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.

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 (a) at least 98% of its ordinary income (not taking into account any capital gains or losses) for the calendar year, (b) at least 98.2% of its capital gains in excess of its capital losses for the twelve month period ending on October 31, and (c) all ordinary income and capital gains for previous years that were not distributed during such years and on which the fund paid no U.S. federal income tax.

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. Shareholders of the fund that are individuals and meet certain holding period requirements with respect to their fund shares may be eligible for reduced tax rates on “qualified dividend income,” if any, distributed by the fund to such shareholders. Since the fund’s distribution of net investment income may exceed its earnings and profits for tax purposes, a portion of the distribution may be classified as a return of capital. Return of capital distributions decrease your cost basis and are not taxable until your cost basis has been reduced to zero. If your cost base is zero, return of capital distributions are treated as capital gains.

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.

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 reports 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 31st 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 investing 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.

Tax consequences of investing in derivatives — The fund may enter into transactions involving derivatives, such as futures, swaps and forward contracts. Special tax rules may apply to these types of transactions that could defer losses to the fund, accelerate the fund’s income, alter the holding period of certain securities or change the classification of capital gains. These tax rules may therefore impact the amount, timing and character of fund distributions.

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 capitalgroup.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, C, T or F-1 shares also refer to the corresponding Class 529-A, 529-C, 529-T 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 capitalgroup.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. 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-6 shares are also available to corporate investment accounts established by The Capital Group Companies, Inc. and its affiliates.

Class R-5 and R-6 shares may also be made available to Virginia529 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.

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 U.S. Government Money Market Fund accounts registered in the name of clients of Capital Group Private Client Services.

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 — With the exception of Class T shares, for which rights of exchange are not generally available, you may only exchange shares without a sales charge into other American Funds within the same share class; however, Class A, C, T or F-1 shares may also generally be exchanged without a sales charge for the corresponding 529 share class.

Notwithstanding the above, exchanges from Class A shares of American Funds U.S. Government Money Market Fund may be made to Class C shares of other American Funds for dollar cost averaging purposes. However, exchanges are not permitted from Class A shares of American Funds U.S. Government Money Market Fund to Class C shares of (1) American Funds Short-Term Tax-Exempt Bond Fund, (2) Intermediate Bond Fund of America, (3) Limited Term Tax-Exempt Bond Fund of America, (4) Short-Term Bond Fund of America or (5) American Funds Inflation Linked Bond Fund.

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 U.S. Government Money Market Fund are subject to applicable sales charges, unless the American Funds U.S. Government 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 capitalgroup.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

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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 — Class C shares of the fund automatically convert to Class F-1 shares and Class 529-C shares of the fund automatically convert to Class 529-A shares, in each case 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 features of the Class C and Class 529-C shares, including without limitation, providing for conversion into a different share class or for no conversion. 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 restriction under the fund’s “frequent trading policy.” Under this policy, systematic redemptions will not trigger a restriction 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.

Potentially abusive activity — American Funds Service Company will monitor for the 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 C shares for Class A or Class T shares — If you exchange Class C shares for Class A or Class T shares, you are still responsible for paying any Class C contingent deferred sales charges and applicable Class A or Class T sales charges.

Exchanging Class C shares for Class F shares — If you are part of a qualified fee-based program or approved self-directed platform 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. Your financial intermediary can also convert Class F-1 shares to Class A shares without a sales charge if they are held in a brokerage account and they were initially transferred to the account or converted from Class C shares. 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

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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.

Exchanging Class A or Class T shares for Class F shares — If you are part of a qualified fee-based program or approved self-directed platform and you wish to exchange your Class A or Class T shares for Class F shares to be held in the program, any Class A or Class T 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. No contingent deferred sales charge will be assessed as part of the share class conversion.

Moving between Class F shares — If you are part of a qualified fee-based program that offers Class F shares, you may exchange your Class F shares for any other Class F shares to be held in the program. For example, if you hold Class F-2 shares, you may exchange your shares for Class F-1 or Class F-3 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 American Funds 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 invested in American Funds Class A or C shares and 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 invested in American Funds Class A or C shares and 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 was 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) will be aggregated at the plan level for Class A sales charge purposes if an employer adopts a prototype plan produced by American Funds Distributors, Inc. or (a) the employer or plan sponsor submits all contributions for all participating employees in a single contribution transmittal or the contributions are identified as related to the same plan; (b) each transmittal is accompanied by checks or wire transfers and generally must be submitted through the transfer agent’s automated contribution system if held on the fund’s books; and (c) if the fund is expected to carry separate accounts in the name of each plan participant and (i) the employer or plan sponsor notifies the funds’ transfer agent or the intermediary holding the account that the separate accounts of all plan participants should be linked and (ii) all new participant accounts are established by submitting the appropriate documentation on behalf of each new participant. Participant accounts in a SEP or SIMPLE plan that are eligible to aggregate their assets at the plan level may not also aggregate the assets with their individual accounts.

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Other purchases

In addition, American Funds Class A and Class 529-A shares may be offered at net asset value to companies exchanging securities with the fund through a merger, acquisition or exchange offer and to certain individuals meeting the criteria described above who invested in Class A and Class 529-A shares before Class F-2 and Class 529-F-1 shares were made available under this privilege.

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. Investment dealers will be compensated solely with an annual service fee that begins to accrue immediately.

Class F-2 and Class 529-F-1 purchases

If requested, American Funds Class F-2 and Class 529-F-1 shares will be sold 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 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; and
(2) The Capital Group Companies, Inc. and its affiliated companies.
Once an account in Class F-2 or Class 529-F-1 is established under this privilege, additional investments can be made in Class F-2 or Class 529-F-1 for the life of the account. Depending on the financial intermediary holding your account, these privileges may be unavailable. Investors should consult their financial intermediary for further information.

Moving between accounts — American Funds investments by certain account types may be moved to other account types without incurring additional Class A sales charges. These transactions include:

· 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

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

Investors may not move investments from a Capital Bank & Trust Company SIMPLE IRA Plus to a Capital Bank & Trust Company SIMPLE IRA unless it is part of a plan transfer or to a current employer’s Capital Bank & Trust Company SIMPLE IRA plan.

These privileges are generally available only if your account is held directly with the fund’s transfer agent or if the financial intermediary holding your account has the systems, policies and procedures to support providing the privileges on its systems. Investors should consult their financial intermediary for further information.

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

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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, and b) purchases by employer-sponsored defined contribution-type retirement plans investing $1 million or more or with 100 or more eligible employees. 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 American Funds (excluding American Funds U.S. Government 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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Joint accounts may be aggregated with other accounts belonging to the primary owner and/or his or her immediate family. The primary owner of a joint account is the individual responsible for taxes on the account.

Concurrent purchases — As described in the prospectus, you may reduce your Class A sales charge by combining purchases of all classes of shares in American Funds. Shares of American Funds U.S. Government 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 U.S. Government Money Market Fund Class A shares 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 American Funds to determine your sales charge on investments in accounts eligible to be aggregated. Direct purchases of American Funds U.S. Government Money Market Fund Class A shares 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.

Reducing your Class T sales charge — As described in the prospectus, the initial sales charge you pay each time you buy Class T shares may differ depending upon the amount you invest and may be

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reduced for larger purchases. Additionally, Class T shares acquired through reinvestment of dividends or capital gain distributions are not subject to an initial sales charge. Sales charges on Class T shares are applied on a transaction-by-transaction basis, and, accordingly, Class T shares are not eligible for any other sales charge waivers or reductions, including through the aggregation of Class T shares concurrently purchased by other related accounts or in other American Funds. The sales charge applicable to Class T shares may not be reduced by establishing a statement of intention, and rights of accumulation are not available for Class T shares.

CDSC waivers for Class A and C shares — As noted in the prospectus, a contingent deferred sales charge (“CDSC”) will 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 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 will be waived for the following types of transactions, if they do not exceed 12% of the value of an “account” (defined below) annually (the “12% limit”):

· Required minimum distributions taken from retirement accounts in accordance with IRS regulations.

· 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.

The CDSC on American Funds Class A shares may be waived in cases where the fund’s transfer agent determines the benefit to the fund of collecting the CDSC would be outweighed by the cost of applying it.

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-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 Virginia529 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 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 (normally seven 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), the fund typically expects to pay redemption proceeds one business day following receipt and acceptance of a redemption 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 U.S. Government 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 and you may be subject to a fee for the transaction.

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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 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 Class T shares and 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.

Depending on the financial intermediary holding your account, your reinvestment privileges may be unavailable or differ from those described in this statement of additional information. Investors should consult their financial intermediary for further information.

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

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 capitalgroup.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 capitalgroup.com. To use American FundsLine, call (800) 325-3590 from a TouchTone™ telephone. Redemptions and exchanges through American FundsLine and capitalgroup.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 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 capitalgroup.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

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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 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.

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 Bank of New York Mellon, One Wall Street, New York, NY 10286, 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 2019 fiscal year, transfer agent fees, gross of any payments made by American Funds Service Company to third parties, were:


Transfer agent fee
Class A $384,000
Class C 26,000
Class T —*
Class F-1 17,000
Class F-2 247,000
Class F-3 41,000
Class 529-A 7,000
Class 529-C 1,000
Class 529-E —*
Class 529-T —*
Class 529-F-1 2,000
Class R-1 —*
Class R-2 3,000
Class R-2E 1,000
Class R-3 2,000
Class R-4 1,000
Class R-5E 7,000
Class R-5 —*
Class R-6 1,000
* Amount less than $1,000.

The fund’s transfer agent is currently waiving a portion of the expenses of Class F-3 shares of the fund. This waiver will be in effect through at least March 1, 2021. The transfer agent may elect at its discretion to extend, modify or terminate the waiver at that time. For each of the fiscal years ended

American Funds Emerging Markets Bond Fund — Page 88






December 31, 2019 and 2018, the total expenses waived by the transfer agent were $28,000 and $4,000, respectively.

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 and review of certain documents to be filed with the SEC. Deloitte Tax LLP prepares tax returns for the fund. 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 the fund’s independent registered public accounting firm is reviewed and determined annually by the board of trustees.

Independent legal counsel — Morgan, Lewis & Bockius LLP, One Federal Street, Boston, MA 02110-1726, 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 December 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 capitalgroup.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, capitalgroup.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 Capital Group 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

American Funds Emerging Markets Bond Fund — Page 89






investment personnel; limitations on service as a director of publicly traded companies; disclosure of personal securities transactions; and policies regarding political contributions.

Credit facility — The fund, together with other U.S. registered investment funds managed by Capital Research and Management Company, has entered into a committed line of credit facility pursuant to which the funds may borrow up to $1.5 billion as a source of temporary liquidity on a first-come, first-served basis. Under the credit facility, loans are generally unsecured; however, a borrowing fund must collateralize any borrowings under the facility on an equivalent basis if it has certain other collateralized borrowings.

American Funds Emerging Markets Bond Fund — Page 90








Determination of net asset value, redemption price and maximum offering price per share for Class A shares — December 31, 2019


Net asset value and redemption price per share
(Net assets divided by shares outstanding) $9.94
Maximum offering price per share
(100/96.25 of net asset value per share, which takes into account the fund’s current maximum sales charge) $10.33
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.

American Funds Emerging Markets Bond Fund — Page 91








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 C Class T Class F-1 Class F-2 Class F-3
Stock and stock/fixed income funds
AMCAP Fund® 002 302 43002 402 602 702
American Balanced Fund® 011 311 43011 411 611 711
American Funds Developing World Growth and Income FundSM 30100 33100 43100 34100 36100 37100
American Funds Global Balanced FundSM 037 337 43037 437 637 737
American Funds Global Insight FundSM 30122 33122 43122 34122 36122 37122
American Funds International Vantage FundSM 30123 33123 43123 34123 36123 37123
American Mutual Fund® 003 303 43003 403 603 703
Capital Income Builder® 012 312 43012 412 612 712
Capital World Growth and Income Fund® 033 333 43033 433 633 733
EuroPacific Growth Fund® 016 316 43016 416 616 716
Fundamental Investors® 010 310 43010 410 610 710
The Growth Fund of America® 005 305 43005 405 605 705
The Income Fund of America® 006 306 43006 406 606 706
International Growth and Income FundSM 034 334 43034 434 634 734
The Investment Company of America® 004 304 43004 404 604 704
The New Economy Fund® 014 314 43014 414 614 714
New Perspective Fund® 007 307 43007 407 607 707
New World Fund® 036 336 43036 436 636 736
SMALLCAP World Fund® 035 335 43035 435 635 735
Washington Mutual Investors FundSM 001 301 43001 401 601 701
Fixed income funds
American Funds Emerging Markets Bond Fund® 30114 33114 43114 34114 36114 37114
American Funds Corporate Bond Fund® 032 332 43032 432 632 732
American Funds Inflation Linked Bond Fund® 060 360 43060 460 660 760
American Funds Mortgage Fund® 042 342 43042 442 642 742
American Funds Short-Term Tax-Exempt
Bond Fund® 039 N/A 43039 439 639 739
American Funds Strategic Bond FundSM 30112 33112 43112 34112 36112 37112
American Funds Tax-Exempt Fund of
New York® 041 341 43041 441 641 741
American High-Income Municipal Bond Fund® 040 340 43040 440 640 740
American High-Income Trust® 021 321 43021 421 621 721
The Bond Fund of America® 008 308 43008 408 608 708
Capital World Bond Fund® 031 331 43031 431 631 731
Intermediate Bond Fund of America® 023 323 43023 423 623 723
Limited Term Tax-Exempt Bond Fund
of America® 043 343 43043 443 643 743
Short-Term Bond Fund of America® 048 348 43048 448 648 748
The Tax-Exempt Bond Fund of America® 019 319 43019 419 619 719
The Tax-Exempt Fund of California® 020 320 43020 420 620 720
U.S. Government Securities Fund® 022 322 43022 422 622 722
Money market fund
American Funds U.S. Government
Money Market FundSM 059 359 43059 459 659 759
American Funds Emerging Markets Bond Fund — Page 92







Fund numbers
Fund Class
529-A Class
529-C Class
529-E Class
529-T Class
529-F-1 Class
ABLE-A
Stock and stock/fixed income funds
AMCAP Fund 1002 1302 1502 46002 1402 N/A
American Balanced Fund 1011 1311 1511 46011 1411 N/A
American Funds Developing World Growth and Income Fund 10100 13100 15100 46100 14100 N/A
American Funds Global Balanced Fund 1037 1337 1537 46037 1437 N/A
American Funds Global Insight Fund 10122 13122 15122 46122 14122 N/A
American Funds International Vantage Fund 10123 13123 15123 46123 14123 N/A
American Mutual Fund 1003 1303 1503 46003 1403 N/A
Capital Income Builder 1012 1312 1512 46012 1412 N/A
Capital World Growth and Income Fund 1033 1333 1533 46033 1433 N/A
EuroPacific Growth Fund 1016 1316 1516 46016 1416 N/A
Fundamental Investors 1010 1310 1510 46010 1410 N/A
The Growth Fund of America 1005 1305 1505 46005 1405 N/A
The Income Fund of America 1006 1306 1506 46006 1406 N/A
International Growth and Income Fund 1034 1334 1534 46034 1434 N/A
The Investment Company of America 1004 1304 1504 46004 1404 N/A
The New Economy Fund 1014 1314 1514 46014 1414 N/A
New Perspective Fund 1007 1307 1507 46007 1407 N/A
New World Fund 1036 1336 1536 46036 1436 N/A
SMALLCAP World Fund 1035 1335 1535 46035 1435 N/A
Washington Mutual Investors Fund 1001 1301 1501 46001 1401 N/A
Fixed income funds
American Funds Emerging Markets Bond Fund 10114 13114 15114 46114 14114 N/A
American Funds Corporate Bond Fund 1032 1332 1532 46032 1432 N/A
American Funds Inflation Linked Bond Fund 1060 1360 1560 46060 1460 N/A
American Funds Mortgage Fund 1042 1342 1542 46042 1442 N/A
American Funds Strategic Bond Fund 10112 13112 15112 46112 14112 N/A
American High-Income Trust 1021 1321 1521 46021 1421 N/A
The Bond Fund of America 1008 1308 1508 46008 1408 N/A
Capital World Bond Fund 1031 1331 1531 46031 1431 N/A
Intermediate Bond Fund of America 1023 1323 1523 46023 1423 N/A
Short-Term Bond Fund of America 1048 1348 1548 46048 1448 N/A
U.S. Government Securities Fund 1022 1322 1522 46022 1422 N/A
Money market fund
American Funds U.S. Government
Money Market Fund 1059 1359 1559 46059 1459 48059
American Funds Emerging Markets Bond Fund — Page 93







Fund numbers
Fund Class
R-1 Class
R-2 Class
R-2E Class
R-3 Class
R-4 Class
R-5E Class
R-5 Class
R-6
Stock and stock/fixed income funds
AMCAP Fund 2102 2202 4102 2302 2402 2702 2502 2602
American Balanced Fund 2111 2211 4111 2311 2411 2711 2511 2611
American Funds Developing World Growth and Income Fund 21100 22100 41100 23100 24100 27100 25100 26100
American Funds Global Balanced Fund 2137 2237 4137 2337 2437 2737 2537 2637
American Funds Global Insight Fund 21122 22122 41122 23122 24122 27122 25122 26122
American Funds International Vantage Fund 21123 22123 41123 23123 24123 27123 25123 26123
American Mutual Fund 2103 2203 4103 2303 2403 2703 2503 2603
Capital Income Builder 2112 2212 4112 2312 2412 2712 2512 2612
Capital World Growth and Income Fund 2133 2233 4133 2333 2433 2733 2533 2633
EuroPacific Growth Fund 2116 2216 4116 2316 2416 2716 2516 2616
Fundamental Investors 2110 2210 4110 2310 2410 2710 2510 2610
The Growth Fund of America 2105 2205 4105 2305 2405 2705 2505 2605
The Income Fund of America 2106 2206 4106 2306 2406 2706 2506 2606
International Growth and Income Fund 2134 2234 41034 2334 2434 27034 2534 2634
The Investment Company of America 2104 2204 4104 2304 2404 2704 2504 2604
The New Economy Fund 2114 2214 4114 2314 2414 2714 2514 2614
New Perspective Fund 2107 2207 4107 2307 2407 2707 2507 2607
New World Fund 2136 2236 4136 2336 2436 2736 2536 2636
SMALLCAP World Fund 2135 2235 4135 2335 2435 2735 2535 2635
Washington Mutual Investors Fund 2101 2201 4101 2301 2401 2701 2501 2601
Fixed income funds
American Funds Emerging Markets Bond Fund 21114 22114 41114 23114 24114 27114 25114 26114
American Funds Corporate Bond Fund 2132 2232 4132 2332 2432 2732 2532 2632
American Funds Inflation Linked Bond Fund 2160 2260 4160 2360 2460 2760 2560 2660
American Funds Mortgage Fund 2142 2242 4142 2342 2442 2742 2542 2642
American Funds Strategic Bond Fund 21112 22112 41112 23112 24112 27112 25112 26112
American High-Income Trust 2121 2221 4121 2321 2421 2721 2521 2621
The Bond Fund of America 2108 2208 4108 2308 2408 2708 2508 2608
Capital World Bond Fund 2131 2231 4131 2331 2431 2731 2531 2631
Intermediate Bond Fund of America 2123 2223 4123 2323 2423 2723 2523 2623
Short-Term Bond Fund of America 2148 2248 4148 2348 2448 2748 2548 2648
U.S. Government Securities Fund 2122 2222 4122 2322 2422 2722 2522 2622
Money market fund
American Funds U.S. Government
Money Market Fund 2159 2259 4159 2359 2459 2759 2559 2659
American Funds Emerging Markets Bond Fund — Page 94







Fund numbers
Fund Class A Class C Class T Class F-1 Class F-2 Class F-3
American Funds Target Date Retirement Series®
American Funds 2065 Target Date Retirement FundSM 30185 33185 43185 34185 36185 37185
American Funds 2060 Target Date Retirement Fund® 083 383 43083 483 683 783
American Funds 2055 Target Date Retirement Fund® 082 382 43082 482 682 782
American Funds 2050 Target Date Retirement Fund® 069 369 43069 469 669 769
American Funds 2045 Target Date Retirement Fund® 068 368 43068 468 668 768
American Funds 2040 Target Date Retirement Fund® 067 367 43067 467 667 767
American Funds 2035 Target Date Retirement Fund® 066 366 43066 466 36066 766
American Funds 2030 Target Date Retirement Fund® 065 365 43065 465 665 765
American Funds 2025 Target Date Retirement Fund® 064 364 43064 464 664 764
American Funds 2020 Target Date Retirement Fund® 063 363 43063 463 663 763
American Funds 2015 Target Date Retirement Fund® 062 362 43062 462 662 762
American Funds 2010 Target Date Retirement Fund® 061 361 43061 461 661 761

Fund numbers
Fund Class
R-1 Class
R-2 Class
R-2E Class
R-3 Class
R-4 Class
R-5E Class
R-5 Class
R-6
American Funds Target Date Retirement Series®
American Funds 2065
Target Date Retirement FundSM 21185 22185 41185 23185 24185 27185 25185 26185
American Funds 2060
Target Date Retirement Fund® 2183 2283 4183 2383 2483 2783 2583 2683
American Funds 2055
Target Date Retirement Fund® 2182 2282 4182 2382 2482 2782 2582 2682
American Funds 2050
Target Date Retirement Fund® 2169 2269 4169 2369 2469 2769 2569 2669
American Funds 2045
Target Date Retirement Fund® 2168 2268 4168 2368 2468 2768 2568 2668
American Funds 2040
Target Date Retirement Fund® 2167 2267 4167 2367 2467 2767 2567 2667
American Funds 2035
Target Date Retirement Fund® 2166 2266 4166 2366 2466 2766 2566 2666
American Funds 2030
Target Date Retirement Fund® 2165 2265 4165 2365 2465 2765 2565 2665
American Funds 2025
Target Date Retirement Fund® 2164 2264 4164 2364 2464 2764 2564 2664
American Funds 2020
Target Date Retirement Fund® 2163 2263 4163 2363 2463 2763 2563 2663
American Funds 2015
Target Date Retirement Fund® 2162 2262 4162 2362 2462 2762 2562 2662
American Funds 2010
Target Date Retirement Fund® 2161 2261 4161 2361 2461 2761 2561 2661
American Funds Emerging Markets Bond Fund — Page 95







Fund numbers
Fund Class
529-A Class
529-C Class
529-E Class
529-T Class
529-F-1
American Funds College Target Date Series®
American Funds College 2036 FundSM 10125 13125 15125 46125 14125
American Funds College 2033 Fund® 10103 13103 15103 46103 14103
American Funds College 2030 Fund® 1094 1394 1594 46094 1494
American Funds College 2027 Fund® 1093 1393 1593 46093 1493
American Funds College 2024 Fund® 1092 1392 1592 46092 1492
American Funds College 2021 Fund® 1091 1391 1591 46091 1491
American Funds College Enrollment Fund® 1088 1388 1588 46088 1488

Fund numbers
Fund Class
A Class
C Class
T Class
F-1 Class
F-2 Class
F-3
American Funds Portfolio SeriesSM
American Funds Global Growth PortfolioSM 055 355 43055 455 655 755
American Funds Growth PortfolioSM 053 353 43053 453 653 753
American Funds Growth and Income PortfolioSM 051 351 43051 451 651 751
American Funds Moderate
Growth and Income PortfolioSM 050 350 43050 450 650 750
American Funds Conservative
Growth and Income PortfolioSM 047 347 43047 447 647 747
American Funds Tax-Aware Conservative
Growth and Income PortfolioSM 046 346 43046 446 646 746
American Funds Preservation PortfolioSM 045 345 43045 445 645 745
American Funds Tax-Exempt Preservation PortfolioSM 044 344 43044 444 644 744

Fund numbers
Fund Class
529-A Class
529-C Class
529-E Class
529-T Class
529-F-1 Class
ABLE-A
American Funds Global Growth Portfolio 1055 1355 1555 46055 1455 48055
American Funds Growth Portfolio 1053 1353 1553 46053 1453 48053
American Funds Growth and Income Portfolio 1051 1351 1551 46051 1451 48051
American Funds Moderate
Growth and Income Portfolio 1050 1350 1550 46050 1450 48050
American Funds Conservative
Growth and Income Portfolio 1047 1347 1547 46047 1447 48047
American Funds Tax-Aware Conservative
Growth and Income Portfolio N/A N/A N/A N/A N/A N/A
American Funds Preservation Portfolio 1045 1345 1545 46045 1445 48045
American Funds Tax-Exempt Preservation Portfolio N/A N/A N/A N/A N/A N/A

Fund numbers
Fund Class
R-1 Class
R-2 Class
R-2E Class
R-3 Class
R-4 Class
R-5E Class
R-5 Class
R-6
American Funds Global Growth Portfolio 2155 2255 4155 2355 2455 2755 2555 2655
American Funds Growth Portfolio 2153 2253 4153 2353 2453 2753 2553 2653
American Funds Growth and Income Portfolio 2151 2251 4151 2351 2451 2751 2551 2651
American Funds Moderate
Growth and Income Portfolio 2150 2250 4150 2350 2450 2750 2550 2650
American Funds Conservative
Growth and Income Portfolio 2147 2247 4147 2347 2447 2747 2547 2647
American Funds Tax-Aware Conservative
Growth and Income Portfolio N/A N/A N/A N/A N/A N/A N/A N/A
American Funds Preservation Portfolio 2145 2245 4145 2345 2445 2745 2545 2645
American Funds Tax-Exempt Preservation Portfolio N/A N/A N/A N/A N/A N/A N/A N/A
American Funds Emerging Markets Bond Fund — Page 96







Fund numbers
Fund Class A Class C Class T Class F-1 Class F-2 Class F-3
American Funds Retirement Income Portfolio SeriesSM
American Funds Retirement Income Portfolio – ConservativeSM 30109 33109 43109 34109 36109 37109
American Funds Retirement Income Portfolio – ModerateSM 30110 33110 43110 34110 36110 37110
American Funds Retirement Income Portfolio – EnhancedSM 30111 33111 43111 34111 36111 37111

Fund numbers
Fund Class
R-1 Class
R-2 Class
R-2E Class
R-3 Class
R-4 Class
R-5E Class
R-5 Class
R-6
American Funds Retirement Income Portfolio – Conservative 21109 22109 41109 23109 24109 27109 25109 26109
American Funds Retirement Income Portfolio – Moderate 21110 22110 41110 23110 24110 27110 25110 26110
American Funds Retirement Income Portfolio – Enhanced 21111 22111 41111 23111 24111 27111 25111 26111
American Funds Emerging Markets Bond Fund — Page 97








Appendix

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

Description of bond ratings

Moody’s
Long-term rating scale

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.

American Funds Emerging Markets Bond Fund — Page 98








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.

American Funds Emerging Markets Bond Fund — Page 99






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.

NR

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.

American Funds Emerging Markets Bond Fund — Page 100








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.

American Funds Emerging Markets Bond Fund — Page 101






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.

American Funds Emerging Markets Bond Fund — Page 102








Description of commercial paper ratings

Moody’s

Global short-term rating scale

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.

NP

Issuers (or supporting institutions) rated Not Prime do not fall within any of the Prime rating categories.

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.

American Funds Emerging Markets Bond Fund — Page 103







American Funds Emerging Markets Bond Fund®

Investment portfolio
December 31, 2019
Bonds, notes & other debt instruments 93.34%
Bonds & notes of governments & government agencies outside the U.S. 82.25% Principal amount
(000) Value
(000)
Abu Dhabi (Emirate of) 3.125% 2027 $1,600 $1,679
Angola (Republic of) 8.00% 20291 6,400 6,846
Argentine Republic 2.25% 20202,3 ARS35,264 302
Argentine Republic 4.00% 20203 71,346 655
Argentine Republic (Argentina Central Bank 7D Repo Reference Rate) 70.253% 20204 15,105 132
Argentine Republic 2.50% 20213 89,261 696
Argentine Republic 6.875% 2021 $8,300 4,506
Argentine Republic 5.625% 2022 1,900 989
Argentine Republic (Badlar Private Banks ARS Index + 2.00%) 55.469% 20224 ARS63,953 603
Argentine Republic 7.50% 2026 $11,300 5,908
Argentine Republic 6.875% 2027 3,400 1,701
Argentine Republic 5.875% 2028 2,000 946
Argentine Republic 7.82% 20335 €1,238 805
Argentine Republic 0% 2035 $600 15
Argentine Republic 3.75% 2038 (5.25% on 3/31/2029)5 2,984 1,465
Argentine Republic 6.875% 2048 380 183
Argentine Republic Inflation-Protected Security 5.83% 20333 ARS37,779 349
Bahrain (Kingdom of) 5.50% 2020 $2,860 2,884
Bahrain (Kingdom of) 5.875% 2021 650 671
Bahrain (Kingdom of) 6.125% 2023 1,980 2,191
Bahrain (Kingdom of) 6.75% 20291 520 609
Banque Centrale de Tunisie 6.75% 2023 €5,070 5,896
Banque Centrale de Tunisie 6.75% 2023 110 128
Banque Centrale de Tunisie 5.625% 2024 800 895
Banque Centrale de Tunisie 5.75% 2025 $425 398
Banque Centrale de Tunisie 6.375% 2026 €6,500 7,253
Benin (Republic of) 5.75% 2026 1,230 1,441
Brazil (Federative Republic of) 10.00% 2023 BRL2,000 553
Brazil (Federative Republic of) 10.00% 2025 124,648 35,631
Brazil (Federative Republic of) 10.00% 2027 22,000 6,437
Brazil (Federative Republic of) 6.00% 20283 3,990 1,196
Brazil (Federative Republic of) 6.00% 20553 3,325 1,217
Buenos Aires (City of) (Badlar Private Banks ARS Index + 3.25%) 54.127% 20244 ARS39,040 442
Buenos Aires (City of) (Badlar Private Banks ARS Index + 3.75%) 60.528% 20284 57,063 616
Cameroon (Republic of) 9.50% 2025 $3,000 3,375
Chile (Banco Central de) 4.50% 2026 CLP645,000 946
Chile (Banco Central de) 4.70% 2030 545,000 826
China (People’s Republic of), Series 1906, 3.29% 2029 CNY10,900 1,582
China (People’s Republic of), Series 1910, 3.86% 2049 92,920 13,700
China Development Bank Corp., Series 1905, 3.48% 2029 68,300 9,650
Colombia (Republic of), Series UVL, 3.50% 20213 COP1,682,323 594
Colombia (Republic of), Series B, 7.00% 2022 2,333,200 743
Colombia (Republic of), Series B, 6.25% 2025 34,521,400 10,814
Colombia (Republic of), Series B, 7.50% 2026 15,462,800 5,141
Colombia (Republic of), Series B, 6.00% 2028 21,410,000 6,490
Colombia (Republic of), Series B, 7.75% 2030 9,490,000 3,197
Costa Rica (Republic of) 4.375% 2025 $785 785
American Funds Emerging Markets Bond Fund — Page 1 of 10
Bonds, notes & other debt instruments (continued)
Bonds & notes of governments & government agencies outside the U.S. (continued) Principal amount
(000) Value
(000)
Costa Rica (Republic of) 6.125% 20311 $2,735 $2,913
Costa Rica (Republic of) 7.00% 2044 2,222 2,346
Cote d’Ivoire (Republic of) 5.375% 20241 900 948
Cote d’Ivoire (Republic of) 5.25% 2030 €4,400 5,045
Cote d’Ivoire (Republic of) 5.875% 2031 5,875 6,875
Dominican Republic 10.50% 2023 DOP39,300 757
Dominican Republic 5.50% 2025 $2,244 2,422
Dominican Republic 6.875% 2026 1,635 1,871
Dominican Republic 6.875% 20261 1,200 1,373
Dominican Republic 9.75% 2026 DOP281,750 5,464
Dominican Republic 10.375% 2026 9,600 186
Dominican Republic 11.00% 2026 54,400 1,085
Dominican Republic 5.95% 20271 $3,600 3,984
Dominican Republic 5.95% 2027 3,087 3,416
Dominican Republic 11.25% 2027 DOP62,600 1,252
Dominican Republic 11.375% 2029 35,000 710
Dominican Republic 7.45% 2044 $2,500 3,024
Dominican Republic 6.85% 20451 600 687
Dominican Republic 6.50% 2048 692 765
Dominican Republic 6.40% 20491 2,360 2,595
Egypt (Arab Republic of) 4.55% 20231 5,300 5,423
Egypt (Arab Republic of) 5.577% 20231 1,575 1,651
Egypt (Arab Republic of) 17.20% 2023 EGP13,000 896
Egypt (Arab Republic of) 18.35% 2023 33,000 2,346
Egypt (Arab Republic of) 15.90% 2024 29,600 1,997
Egypt (Arab Republic of) 4.75% 2026 €1,900 2,248
Egypt (Arab Republic of) 15.70% 2027 EGP22,200 1,530
Egypt (Arab Republic of) 6.588% 20281 $2,100 2,195
Egypt (Arab Republic of) 5.625% 2030 €1,465 1,699
Egypt (Arab Republic of) 7.50% 20321 $2,500 2,625
Egypt (Arab Republic of) 8.50% 20471 200 223
Egypt (Arab Republic of) 8.15% 20591 2,600 2,785
Ethiopia (Federal Democratic Republic of) 6.625% 2024 3,500 3,788
Gabonese Republic 6.375% 2024 3,580 3,748
Gabonese Republic 6.95% 2025 2,300 2,429
Ghana (Republic of) 19.75% 2024 GHS487 82
Ghana (Republic of) 19.00% 2026 9,740 1,570
Greece (Hellenic Republic of) 3.375% 2025 €1,740 2,222
Greece (Hellenic Republic of) 3.75% 2028 1,520 2,019
Guatemala (Republic of) 4.375% 2027 $3,125 3,243
Honduras (Republic of) 6.25% 2027 6,900 7,549
Honduras (Republic of) 6.25% 20271 2,975 3,255
India (Republic of) 6.84% 2022 INR40,000 570
India (Republic of) 7.32% 2024 150,000 2,165
India (Republic of) 8.24% 2027 729,000 11,000
India (Republic of) 7.17% 2028 325,000 4,648
India (Republic of) 7.59% 2029 303,100 4,448
Indonesia (Republic of), Series 77, 8.125% 2024 IDR34,245,000 2,634
Indonesia (Republic of), Series 59, 7.00% 2027 89,289,000 6,423
Indonesia (Republic of), Series 64, 6.125% 2028 145,446,000 9,896
Indonesia (Republic of), Series 82, 7.00% 2030 60,000,000 4,285
Indonesia (Republic of), Series 73, 8.75% 2031 42,600,000 3,396
Indonesia (Republic of), Series 65, 6.625% 2033 190,830,000 12,725
Indonesia (Republic of), Series 68, 8.375% 2034 24,000,000 1,854
Indonesia (Republic of), Series 72, 8.25% 2036 57,999,000 4,380
American Funds Emerging Markets Bond Fund — Page 2 of 10
Bonds, notes & other debt instruments (continued)
Bonds & notes of governments & government agencies outside the U.S. (continued) Principal amount
(000) Value
(000)
Iraq (Republic of) 6.752% 20231 $2,905 $2,980
Iraq (Republic of) 5.80% 2028 250 245
Jordan (Hashemite Kingdom of) 5.75% 20271 4,800 5,077
Kazakhstan (Republic of) 6.50% 2045 1,500 2,217
Kenya (Republic of) 6.875% 2024 6,045 6,558
Kenya (Republic of) 7.25% 2028 2,400 2,615
Kenya (Republic of) 7.25% 20281 1,725 1,880
Kenya (Republic of) 8.00% 20321 700 765
Kenya (Republic of) 8.25% 2048 800 860
Kenya (Republic of) 8.25% 20481 660 709
Maharashtra (State of) 8.12% 2025 INR20,210 299
Maharashtra (State of) 7.25% 2026 100,000 1,415
Maharashtra (State of) 8.51% 2026 14,000 210
Malaysia (Federation of), Series 0316, 3.90% 2026 MYR4,100 1,037
Malaysia (Federation of), Series 0212, 3.892% 2027 11,033 2,791
Malaysia (Federation of), Series 0219, 3.885% 2029 22,500 5,757
Malaysia (Federation of), Series 0419, 3.828% 2034 19,800 4,953
Malaysia (Federation of), Series 0619, 4.119% 2034 1,000 254
Malaysia (Federation of), Series 0415, 4.254% 2035 5,600 1,454
Malaysia (Federation of), Series 0615, 4.786% 2035 2,425 660
Malaysia (Federation of), Series 0418, 4.893% 2038 69,400 19,337
Malaysia (Federation of), Series 0219, 4.467% 2039 6,000 1,591
Malaysia (Federation of), Series 0518, 4.921% 2048 4,200 1,167
Morocco (Kingdom of) 4.25% 2022 $3,650 3,854
Morocco (Kingdom of) 3.50% 2024 €3,000 3,833
Morocco (Kingdom of) 5.50% 2042 $370 455
National Highways Authority of India 7.17% 2021 INR30,000 424
Nigeria (Republic of) 6.75% 20211 $1,000 1,039
Nigeria (Republic of) 6.75% 2021 400 416
Nigeria (Republic of) 16.39% 2022 NGN250,000 777
Nigeria (Republic of) 14.2% 2024 485,000 1,532
Nigeria (Republic of) 8.747% 2031 $700 775
Nigeria (Republic of) 7.625% 2047 1,600 1,563
Nigeria (Republic of) 9.248% 2049 1,710 1,916
Oman (Sultanate of) 5.375% 2027 1,500 1,549
Oman (Sultanate of) 5.625% 2028 500 518
Pakistan (Islamic Republic of) 5.50% 2021 1,000 1,024
Pakistan (Islamic Republic of) 5.50% 20211 700 717
Pakistan (Islamic Republic of) 8.25% 2024 2,100 2,345
Pakistan (Islamic Republic of) 8.25% 2025 1,500 1,682
Pakistan (Islamic Republic of) 6.875% 20271 1,900 1,984
Pakistan (Islamic Republic of) 6.875% 2027 400 418
Panama (Republic of) 3.75% 20261 3,585 3,782
Panama (Republic of) 3.16% 2030 2,600 2,682
Panama (Republic of) 4.50% 2047 1,750 2,086
Panama (Republic of) 4.50% 2050 1,170 1,389
Paraguay (Republic of) 5.00% 20261 2,400 2,659
Paraguay (Republic of) 5.00% 2026 720 798
Paraguay (Republic of) 5.60% 20481 3,555 4,172
Peru (Republic of) 4.125% 2027 1,065 1,196
Peru (Republic of) 6.35% 2028 PEN3,200 1,121
Peru (Republic of) 6.15% 2032 9,575 3,278
Peru (Republic of) 8.75% 2033 $820 1,351
Peru (Republic of) 5.40% 2034 PEN15,889 5,041
Peru (Republic of) 5.35% 2040 12,095 3,698
American Funds Emerging Markets Bond Fund — Page 3 of 10
Bonds, notes & other debt instruments (continued)
Bonds & notes of governments & government agencies outside the U.S. (continued) Principal amount
(000) Value
(000)
Poland (Republic of) 4.00% 2024 $2,800 $3,018
Poland (Republic of), Series 0420, 1.50% 2020 PLN20,314 5,364
Poland (Republic of), Series 0922, 5.75% 2022 11,700 3,422
Poland (Republic of), Series 0726, 2.50% 2026 23,777 6,465
PT Indonesia Asahan Aluminium Tbk 6.53% 20281 $350 430
Qatar (State of) 3.875% 20231 800 846
Qatar (State of) 4.50% 20281 5,300 6,082
Qatar (State of) 5.103% 20481 2,200 2,832
Romania 3.50% 2022 RON15,000 3,490
Romania 4.75% 2025 1,560 378
Romania 2.375% 2027 €830 1,019
Romania 2.875% 2029 1,050 1,333
Romania 3.50% 2034 2,010 2,544
Romania 3.375% 2038 2,325 2,844
Romania 4.625% 2049 3,200 4,442
Romania 4.625% 2049 840 1,166
Russian Federation 7.50% 2021 RUB268,000 4,445
Russian Federation 7.00% 2023 1,218,420 20,416
Russian Federation 4.75% 2026 $1,400 1,565
Russian Federation 8.15% 2027 RUB779,690 14,044
Russian Federation 4.375% 20291 $9,400 10,470
Russian Federation 4.375% 2029 200 223
Russian Federation 8.50% 2031 RUB501,366 9,555
Russian Federation 7.70% 2033 46,360 834
Russian Federation 7.25% 2034 247,480 4,300
Russian Federation 5.10% 20351 $800 960
Russian Federation 5.25% 2047 4,000 5,017
Senegal (Republic of) 8.75% 2021 839 911
Senegal (Republic of) 6.25% 2024 4,120 4,573
Senegal (Republic of) 4.75% 2028 €5,300 6,286
Senegal (Republic of) 4.75% 2028 2,540 3,013
Serbia (Republic of) 1.50% 2029 1,672 1,912
South Africa (Republic of) 4.665% 2024 $1,500 1,568
South Africa (Republic of) 8.00% 2030 ZAR44,800 2,988
South Africa (Republic of) 8.25% 2032 42,000 2,755
South Africa (Republic of) 8.50% 2037 35,900 2,273
South Africa (Republic of), Series R-186, 10.50% 2026 38,370 3,067
South Africa (Republic of), Series R-214, 6.50% 2041 223,495 11,122
South Africa (Republic of), Series R-2048, 8.75% 2048 337,360 21,276
Sri Lanka (Democratic Socialist Republic of) 6.25% 2021 $1,620 1,649
Sri Lanka (Democratic Socialist Republic of) 6.125% 2025 2,500 2,436
Sri Lanka (Democratic Socialist Republic of) 6.85% 2025 900 904
Sri Lanka (Democratic Socialist Republic of) 6.825% 2026 2,000 1,979
Sri Lanka (Democratic Socialist Republic of) 6.825% 20261 1,350 1,336
Sri Lanka (Democratic Socialist Republic of) 6.20% 2027 2,900 2,726
Sri Lanka (Democratic Socialist Republic of) 6.20% 20271 2,800 2,632
Sri Lanka (Democratic Socialist Republic of) 6.75% 20281 2,045 1,963
Sri Lanka (Democratic Socialist Republic of) 7.85% 20291 875 890
Thailand (Kingdom of) 2.875% 2028 THB97,200 3,632
Turkey (Republic of) 3.00% 20213 TRY21,938 3,702
Turkey (Republic of) 9.20% 2021 5,600 913
Turkey (Republic of) 10.70% 2021 43,200 7,251
Turkey (Republic of) 8.50% 2022 3,900 616
Turkey (Republic of) 3.00% 20233 7,893 1,318
Turkey (Republic of) 7.25% 2023 $1,760 1,909
American Funds Emerging Markets Bond Fund — Page 4 of 10
Bonds, notes & other debt instruments (continued)
Bonds & notes of governments & government agencies outside the U.S. (continued) Principal amount
(000) Value
(000)
Turkey (Republic of) 12.20% 2023 TRY9,600 $1,646
Turkey (Republic of) 2.00% 20243 18,378 2,893
Turkey (Republic of) 3.20% 20243 6,405 1,096
Turkey (Republic of) 4.10% 20243 9,244 1,649
Turkey (Republic of) 5.75% 2024 $800 820
Turkey (Republic of) 9.00% 2024 TRY2,825 431
Turkey (Republic of) 7.375% 2025 $800 875
Turkey (Republic of) 8.00% 2025 TRY4,850 701
Turkey (Republic of) 2.70% 20263 9,840 1,565
Turkey (Republic of) 4.25% 2026 $2,950 2,759
Turkey (Republic of) 4.875% 2026 2,000 1,915
Turkey (Republic of) 6.125% 2028 3,420 3,471
Turkey (Republic of) 7.625% 2029 1,400 1,550
Ukraine Government 14.64% 2020 UAH31,318 1,322
Ukraine Government 15.70% 2020 125,271 5,262
Ukraine Government 17.25% 2020 49,282 2,135
Ukraine Government 7.75% 2021 $3,800 4,029
Ukraine Government 16.00% 2021 UAH40,000 1,750
Ukraine Government 14.91% 2022 49,742 2,207
Ukraine Government 17.00% 2022 50,293 2,303
Ukraine Government 10.00% 2023 31,600 1,287
Ukraine Government 8.994% 2024 $4,670 5,271
Ukraine Government 7.75% 2025 1,200 1,314
Ukraine Government 15.84% 2025 UAH56,565 2,798
Ukraine Government 6.75% 2026 €7,358 9,288
United Mexican States 4.15% 2027 $1,030 1,105
United Mexican States 4.00% 20463 MXN56,560 3,301
United Mexican States 5.75% 2110 $3,348 3,972
United Mexican States, Series M, 8.00% 2023 MXN89,300 4,924
United Mexican States, Series M, 5.75% 2026 185,800 9,320
United Mexican States, Series M20, 8.50% 2029 272,000 16,023
United Mexican States, Series M, 7.75% 2034 60,000 3,401
Uruguay (Oriental Republic of) 9.875% 2022 UYU84,576 2,207
Uruguay (Oriental Republic of) 4.375% 20283 170,823 4,761
Uruguay (Oriental Republic of) 8.50% 2028 68,920 1,585
Venezuela (Bolivarian Republic of) 7.00% 20182 $225 27
Venezuela (Bolivarian Republic of) 7.75% 20192 4,983 586
Venezuela (Bolivarian Republic of) 6.00% 20202 3,353 402
Venezuela (Bolivarian Republic of) 12.75% 20222 300 36
Venezuela (Bolivarian Republic of) 9.00% 20232 4,895 587
Venezuela (Bolivarian Republic of) 8.25% 20242 2,276 273
Venezuela (Bolivarian Republic of) 7.65% 20252 450 54
Venezuela (Bolivarian Republic of) 11.75% 20262 225 27
Venezuela (Bolivarian Republic of) 9.25% 20272 3,060 367
Venezuela (Bolivarian Republic of) 9.25% 20282 1,129 135
Venezuela (Bolivarian Republic of) 11.95% 20312 377 45
Venezuela (Bolivarian Republic of) 7.00% 20382 377 45
779,275
Corporate bonds & notes 9.48%
Industrials 2.96%
Autoridad del Canal de Panama 4.95% 2035 400 467
Dianjian Haiyu Ltd. 3.50% (UST Yield Curve Rate T Note Constant Maturity 5-year + 6.773% on 7/19/2023)5 800 804
Dianjian International Finance Ltd.,
4.60% (UST Yield Curve Rate T Note Constant Maturity 5-year + 6.933% on 7/19/2023)5 3,100 3,205
American Funds Emerging Markets Bond Fund — Page 5 of 10
Bonds, notes & other debt instruments (continued)
Corporate bonds & notes (continued)
Industrials (continued) Principal amount
(000) Value
(000)
DP World Crescent 4.848% 20281 $4,700 $5,164
ENA Norte Trust 4.95% 2028 1,591 1,648
Lima Metro Line 2 Finance Ltd. 4.35% 20361 3,370 3,580
Mexico City Airport Trust 5.50% 2046 2,088 2,160
Mexico City Airport Trust 5.50% 2047 8,212 8,497
Rutas 2 and 7 Finance Ltd. 0% 20361 3,895 2,535
28,060
Energy 2.52%
MV24 Capital BV 6.748% 20341 3,660 3,873
Petrobras Global Finance Co. 8.75% 2026 1,550 1,993
Petróleos Mexicanos 7.19% 2024 MXN111,770 5,409
Petróleos Mexicanos 6.875% 2026 $950 1,046
Petróleos Mexicanos 7.47% 2026 MXN203,270 9,457
Petróleos Mexicanos 6.49% 20271 $1,234 1,314
Petróleos Mexicanos 6.50% 2029 753 794
23,886
Financials 1.30%
Bangkok Bank PCL 4.45% 20281 900 997
CCCI Treasure Ltd., 3.50%
(UST Yield Curve Rate T Note Constant Maturity 5-year + 7.192% on 4/21/2020)5 3,621 3,630
HDFC Bank Ltd. 8.10% 2025 INR30,000 420
Industrial and Commercial Bank of China Ltd. 3.538% 2027 $2,900 3,009
Itau Unibanco Holding SA 4.50% 2029 (5-year USD-CMT + 2.822% on 11/21/2029)1,5 2,650 2,716
Leader Goal International Ltd. 4.25%5 1,530 1,565
12,337
Materials 1.18%
Braskem Idesa Sapi 7.45% 20291 2,600 2,775
Braskem SA 4.50% 20301 4,090 4,076
Cydsa SAB de CV 6.25% 2027 900 927
Cydsa SAB de CV 6.25% 20271 755 778
Suzano Austria GmbH 5.00% 2030 2,500 2,632
11,188
Utilities 1.12%
Empresas Publicas de Medellin E.S.P. 8.375% 2027 COP10,000,000 3,219
Empresas Publicas de Medellin E.S.P. 4.25% 20291 $3,230 3,366
Enel Chile SA 4.875% 2028 3,035 3,362
Enersis Américas SA 4.00% 2026 615 638
10,585
Consumer staples 0.25%
JBS Investments GmbH II 7.00% 2026 1,200 1,308
JBS Investments GmbH II 5.75% 20281 1,010 1,067
2,375
Consumer discretionary 0.15%
Melco International Development Ltd. 5.375% 20291 1,350 1,388
Total corporate bonds & notes 89,819
American Funds Emerging Markets Bond Fund — Page 6 of 10
Bonds, notes & other debt instruments (continued)
U.S. Treasury bonds & notes 1.61%
U.S. Treasury 0.93% Principal amount
(000) Value
(000)
U.S. Treasury 1.625% 20296 $9,000 $8,767
U.S. Treasury inflation-protected securities 0.68%
U.S. Treasury Inflation-Protected Security 0.125% 20243 2,507 2,523
U.S. Treasury Inflation-Protected Security 0.50% 20243 3,877 3,942
6,465
Total U.S. Treasury bonds & notes 15,232
Total bonds, notes & other debt instruments (cost: $882,022,000) 884,326
Short-term securities 4.55%
Money market investments 3.53% Shares
Capital Group Central Cash Fund 1.73%7 334,894 33,489
Other short-term securities 1.02% Principal amount
(000)
Argentinian Treasury Bills (3.88%)-58.68% due 7/29/2020-7/31/2020 ARS231,787 2,555
Egyptian Treasury Bills 13.37%-13.74% due 5/12/2020-7/28/2020 EGP119,600 7,101
9,656
Total short-term securities (cost: $47,621,000) 43,145
Total investment securities 97.89% (cost: $929,643,000) 927,471
Other assets less liabilities 2.11% 19,971
Net assets 100.00% $947,442
Futures contracts
Contracts Type Number of
contracts Expiration Notional
amount8
(000) Value at
12/31/20199
(000) Unrealized
(depreciation)
appreciation
at 12/31/2019
(000)
2 Year U.S. Treasury Note Futures Long 478 April 2020 $95,600 $103,009 $(53)
5 Year U.S. Treasury Note Futures Long 273 April 2020 27,300 32,381 (113)
10 Year Euro-Bund Futures Short 100 March 2020 €(10,000) (19,124) 182
10 Year Ultra U.S. Treasury Note Futures Long 212 March 2020 $21,200 29,829 (359)
30 Year Ultra U.S. Treasury Bond Futures Short 43 March 2020 (4,300) (7,811) 242
$(101)
Forward currency contracts
Contract amount Counterparty Settlement
date Unrealized
appreciation
(depreciation)
at 12/31/2019
(000)
Purchases
(000) Sales
(000)
MXN35,000 USD1,792 Goldman Sachs 1/6/2020 $58
EUR3,929 USD4,368 Standard Chartered Bank 1/6/2020 40
EUR2,900 USD3,219 Standard Chartered Bank 1/6/2020 36
American Funds Emerging Markets Bond Fund — Page 7 of 10
Forward currency contracts (continued)
Contract amount Counterparty Settlement
date Unrealized
appreciation
(depreciation)
at 12/31/2019
(000)
Purchases
(000) Sales
(000)
CZK124,460 EUR4,868 Barclays Bank PLC 1/6/2020 $28
USD1,088 THB32,900 JPMorgan Chase 1/6/2020 (10)
USD7,581 EUR6,829 JPMorgan Chase 1/6/2020 (82)
EUR115 USD127 HSBC Bank 1/7/2020 2
EUR410 USD458 UBS AG 1/7/2020 2
USD128 EUR115 Standard Chartered Bank 1/7/2020 (1)
USD453 EUR410 HSBC Bank 1/7/2020 (7)
USD3,767 ZAR55,440 Bank of New York Mellon 1/7/2020 (188)
EUR2,200 USD2,458 Citibank 1/8/2020 11
USD2,449 EUR2,200 JPMorgan Chase 1/8/2020 (20)
EUR1,185 USD1,318 Standard Chartered Bank 1/9/2020 12
USD2,318 EUR2,085 Morgan Stanley 1/9/2020 (22)
USD5,091 PEN17,290 JPMorgan Chase 1/10/2020 (126)
EUR4,282 USD4,763 Standard Chartered Bank 1/13/2020 44
USD2,111 THB64,000 Standard Chartered Bank 1/13/2020 (26)
USD4,754 EUR4,282 HSBC Bank 1/13/2020 (53)
USD1,823 MXN35,000 Citibank 1/15/2020 (23)
PLN45,873 EUR10,685 Bank of America 1/16/2020 94
KRW10,400,000 USD8,922 Citibank 1/16/2020 75
USD2,258 INR160,700 Standard Chartered Bank 1/16/2020 10
PLN6,163 EUR1,440 Citibank 1/16/2020 8
USD2,354 MXN45,100 Citibank 1/16/2020 (26)
USD7,689 BRL32,000 Standard Chartered Bank 1/16/2020 (261)
PLN26,614 EUR6,220 Goldman Sachs 1/17/2020 31
CZK113,491 EUR4,450 Citibank 1/17/2020 9
USD402 ZAR5,850 Standard Chartered Bank 1/17/2020 (15)
EUR6,955 USD7,777 Citibank 1/21/2020 35
USD7,779 EUR6,955 Morgan Stanley 1/21/2020 (33)
USD1,498 ZAR21,700 HSBC Bank 1/21/2020 (47)
CZK182,846 EUR7,180 JPMorgan Chase 1/23/2020 —10
BRL10,600 USD2,603 JPMorgan Chase 1/27/2020 30
EUR2,880 USD3,211 Standard Chartered Bank 1/27/2020 25
USD1,963 EUR1,760 JPMorgan Chase 1/27/2020 (15)
USD10,503 MXN200,000 UBS AG 1/27/2020 (30)
USD4,848 BRL19,800 JPMorgan Chase 1/27/2020 (71)
CNH16,000 USD2,261 Standard Chartered Bank 2/10/2020 36
USD2,240 CNH15,800 Citibank 2/10/2020 (28)
USD4,701 CNH33,600 Standard Chartered Bank 2/10/2020 (122)
USD4,471 INR320,000 JPMorgan Chase 3/12/2020 21
USD1,811 INR130,000 JPMorgan Chase 3/13/2020 4
INR129,680 USD1,803 HSBC Bank 3/13/2020 —10
USD4,339 EUR3,755 Bank of America 3/26/2020 104
EUR2,000 USD2,245 UBS AG 3/26/2020 10
USD10,597 EUR9,438 Standard Chartered Bank 6/12/2020 (99)
USD19,968 EUR17,695 Citibank 6/19/2020 (95)
CZK58,470 USD2,547 Standard Chartered Bank 10/21/2020 32
PLN9,750 USD2,546 Citibank 10/21/2020 24
RON16,508 EUR3,350 HSBC Bank 10/21/2020 (7)
USD2,534 CZK58,470 Bank of America 10/21/2020 (46)
$(672)
American Funds Emerging Markets Bond Fund — Page 8 of 10
Swap contracts
Interest rate swaps
Receive Pay Expiration
date Notional
(000) Value at
12/31/2019
(000) Upfront
payments/
receipts
(000) Unrealized
appreciation
(depreciation)
at 12/31/2019
(000)
2.655% 3-month USD-LIBOR 12/30/2024 $36,300 $1,603 $— $1,603
6.95% 28-day MXN-TIIE 8/8/2029 MXN88,500 50 — 50
3-month USD-LIBOR 2.795% 12/30/2029 $19,300 (1,600) — (1,600)
$— $53
1 Acquired in a transaction exempt from registration under Rule 144A 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 $125,946,000, which represented 13.29% of the net assets of the fund.
2 Scheduled interest and/or principal payment was not received.
3 Index-linked bond whose principal amount moves with a government price index.
4 Coupon rate may change periodically. Reference rate and spread are as of the most recent information available. Some coupon rates are determined by the issuer or agent based on current market conditions; therefore, the reference rate and spread are not available.
5 Step bond; coupon rate may change at a later date.
6 All or a portion of this security was pledged as collateral. The total value of pledged collateral was $1,196,000, which represented .13% of the net assets of the fund.
7 Rate represents the seven-day yield at 12/31/2019.
8 Notional amount is calculated based on the number of contracts and notional contract size.
9 Value is calculated based on the notional amount and current market price.
10 Amount less than one thousand.
Key to abbreviations and symbols
ARS = Argentine pesos MXN = Mexican pesos
BRL = Brazilian reais MYR = Malaysian ringgits
CLP = Chilean pesos NGN = Nigerian naira
CMT = Constant Maturity Treasury PEN = Peruvian nuevos soles
CNH/CNY = Chinese yuan renminbi PLN = Polish zloty
COP = Colombian pesos RON = Romanian leu
CZK = Czech korunas RUB = Russian rubles
DOP = Dominican pesos THB = Thai baht
EGP = Egyptian pounds TIIE = Equilibrium Interbank Interest Rate
EUR/€ = Euros TRY = Turkish lira
GHS = Ghanaian cedi UAH = Ukrainian hryvnia
IDR = Indonesian rupiah USD/$ = U.S. dollars
INR = Indian rupees UYU = Uruguayan pesos
KRW = South Korean won ZAR = South African rand
LIBOR = London Interbank Offered Rate
American Funds Emerging Markets Bond Fund — Page 9 of 10
Additional financial disclosures are included in the fund’s current shareholder report and should be read in conjunction with this report.
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 Capital Group website at capitalgroup.com.
All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.
American Funds Distributors, Inc., member FINRA.
© 2020 Capital Group. All rights reserved.
MFGEFPX-114-0220O-S73215 American Funds Emerging Markets Bond Fund — Page 10 of 10




Summary investment portfolio December 31, 2019



Investment mix by security type Percent of net assets






Portfolio quality summary* Percent of
net assets
U.S. Treasury and agency† 1.61 %
AA/Aa 1.39
A/A 17.54
BBB/Baa 32.61
Below investment grade 40.19
Short-term securities & other assets less liabilities 6.66


* Bond ratings, which typically range from AAA/Aaa (highest) to D (lowest), are assigned by credit rating agencies such as Standard & Poor’s, Moody’s and/or Fitch as an indication of an issuer’s creditworthiness. In assigning a credit rating to a security, the fund looks specifically to the ratings assigned to the issuer of the security by Standard & Poor’s, Moody’s and/or Fitch. If agency ratings differ, the security will be considered to have received the highest of those ratings, consistent with the fund’s investment policies. The ratings are not covered by the Report of Independent Registered Public Accounting Firm.
† These securities are guaranteed by the full faith and credit of the U.S. government.


Bonds, notes & other debt instruments 93.34% Principal amount
(000) Value
(000)
Bonds & notes of governments & government agencies outside the U.S. 82.25%
Angola (Republic of) 8.00% 20291 $ 6,400 $ 6,846
Argentine Republic 7.50% 2026 11,300 5,908
Argentine Republic 7.82% 20332 € 1,238 805
Argentine Republic 2.25%–70.25% 2020–20223,4,5 ARS 274,929 2,388
Argentine Republic 0%–6.88% 2021–20482 $ 19,564 9,805
Argentine Republic Inflation-Protected Security 5.83% 20334 ARS 37,779 349
Banque Centrale de Tunisie 6.75% 2023 € 5,070 5,896
Banque Centrale de Tunisie 5.75% 2025 $ 425 398
Banque Centrale de Tunisie 6.375% 2026 € 6,500 7,253
Banque Centrale de Tunisie 5.63%–6.75% 2023–2024 910 1,023
Brazil (Federative Republic of) 10.00% 2025 BRL 124,648 35,631
Brazil (Federative Republic of) 10.00% 2027 22,000 6,437
Brazil (Federative Republic of) 6.00%–10.00% 2023–20554 9,315 2,966
China (People’s Republic of), Series 1906, 3.29% 2029 CNY 10,900 1,582
China (People’s Republic of), Series 1910, 3.86% 2049 92,920 13,700
China Development Bank Corp., Series 1905, 3.48% 2029 68,300 9,650
Colombia (Republic of), Series B, 6.25% 2025 COP 34,521,400 10,814
Colombia (Republic of), Series B, 7.50% 2026 15,462,800 5,141
Colombia (Republic of), Series B, 6.00% 2028 21,410,000 6,490
Colombia (Republic of) 3.50%–7.75% 2021–20304 13,505,523 4,534
Cote d’Ivoire (Republic of) 5.375% 20241 $ 900 948
Cote d’Ivoire (Republic of) 5.25% 2030 € 4,400 5,045
Cote d’Ivoire (Republic of) 5.875% 2031 5,875 6,875
Dominican Republic 9.75% 2026 DOP 281,750 5,464
Dominican Republic 10.38%–11.38% 2023–2029 200,900 3,990
Dominican Republic 5.50%–7.45% 2025–20491 $ 17,918 20,137
Egypt (Arab Republic of) 4.55% 20231 5,300 5,423
Egypt (Arab Republic of) 5.58%–8.50% 2023–20591 8,975 9,479
Egypt (Arab Republic of) 15.70%–18.35% 2023–2027 EGP 97,800 6,769
Egypt (Arab Republic of) 4.75%–5.63% 2026–2030 € 3,365 3,947
Honduras (Republic of) 6.25% 2027 $ 6,900 7,549
Honduras (Republic of) 6.25% 20271 2,975 3,255


4 American Funds Emerging Markets Bond Fund

Principal amount
(000) Value
(000)
India (Republic of) 8.24% 2027 INR 729,000 $ 11,000
India (Republic of) 6.84%–7.59% 2022–2029 818,100 11,831
Indonesia (Republic of), Series 59, 7.00% 2027 IDR 89,289,000 6,423
Indonesia (Republic of), Series 64, 6.125% 2028 145,446,000 9,896
Indonesia (Republic of), Series 65, 6.625% 2033 190,830,000 12,725
Indonesia (Republic of) 7.00%–8.75% 2024–2036 218,844,000 16,549
Jordan (Hashemite Kingdom of) 5.75% 20271 $ 4,800 5,077
Kenya (Republic of) 6.875% 2024 6,045 6,558
Kenya (Republic of) 7.25%–8.25% 2028–20481 6,285 6,829
Malaysia (Federation of), Series 0219, 3.885% 2029 MYR 22,500 5,757
Malaysia (Federation of), Series 0419, 3.828% 2034 19,800 4,953
Malaysia (Federation of), Series 0418, 4.893% 2038 69,400 19,337
Malaysia (Federation of) 3.89%–4.92% 2026–2048 34,358 8,954
Panama (Republic of) 3.16%–4.50% 2026–20501 $ 9,105 9,939
Peru (Republic of) 5.40% 2034 PEN 15,889 5,041
Peru (Republic of) 4.13%–8.75% 2027–2033 $ 1,885 2,547
Peru (Republic of) 5.35%–6.35% 2028–2040 PEN 24,870 8,097
Poland (Republic of), Series 0420, 1.50% 2020 PLN 20,314 5,364
Poland (Republic of), Series 0922, 5.75% 2022 11,700 3,422
Poland (Republic of) 4.00% 2024 $ 2,800 3,018
Poland (Republic of), Series 0726, 2.50% 2026 PLN 23,777 6,465
PT Indonesia Asahan Aluminium Tbk 6.53% 20281 $ 350 430
Qatar (State of) 4.50% 20281 5,300 6,082
Qatar (State of) 3.88%–5.10% 2023–20481 3,000 3,678
Romania 3.50%–4.75% 2022–2025 RON 16,560 3,868
Romania 2.38%–4.63% 2027–2049 € 10,255 13,348
Russian Federation 7.00% 2023 RUB 1,218,420 20,416
Russian Federation 8.15% 2027 779,690 14,044
Russian Federation 4.375% 20291 $ 9,400 10,470
Russian Federation 8.50% 2031 RUB 501,366 9,555
Russian Federation 5.25% 2047 $ 4,000 5,017
Russian Federation 7.25%–7.70% 2021–2034 RUB 561,840 9,579
Russian Federation 4.38%–5.10% 2026–20351 $ 2,400 2,748
Senegal (Republic of) 4.75% 2028 € 5,300 6,286
Senegal (Republic of) 4.75% 2028 2,540 3,013
Senegal (Republic of) 6.25%–8.75% 2021–2024 $ 4,959 5,484
South Africa (Republic of) 4.665% 2024 1,500 1,568
South Africa (Republic of), Series R-214, 6.50% 2041 ZAR 223,495 11,122
South Africa (Republic of), Series R-2048, 8.75% 2048 337,360 21,276
South Africa (Republic of) 8.00%–10.50% 2026–2037 161,070 11,083
Sri Lanka (Democratic Socialist Republic of) 6.13%–7.85% 2021–20291 $ 16,990 16,515
Turkey (Republic of) 10.70% 2021 TRY 43,200 7,251
Turkey (Republic of) 2.00%–12.20% 2021–20264 100,473 16,530
Turkey (Republic of) 4.25%–7.63% 2023–2029 $ 13,130 13,299
Ukraine Government 15.70% 2020 UAH 125,271 5,262
Ukraine Government 8.994% 2024 $ 4,670 5,271
Ukraine Government 6.75% 2026 € 7,358 9,288
Ukraine Government 10.00%–17.25% 2020–2025 UAH 308,800 13,802
Ukraine Government 7.75% 2021–2025 $ 5,000 5,343
United Mexican States, Series M, 5.75% 2026 MXN 185,800 9,320
United Mexican States, Series M20, 8.50% 2029 272,000 16,023
United Mexican States 4.00%–8.00% 2023–20464 205,860 11,626
United Mexican States 4.15%–5.75% 2027–2110 $ 4,378 5,077
Other securities 99,322
779,275

Corporate bonds & notes 9.48%
Industrials 2.96%
Autoridad del Canal de Panama 4.95% 2035 400 467
Dianjian Haiyu Ltd. 3.50% (UST Yield Curve Rate T Note Constant Maturity 5-year + 6.773% on 7/19/2023)2 800 804
Dianjian International Finance Ltd., 4.60% (UST Yield Curve Rate T Note Constant Maturity 5-year + 6.933% on 7/19/2023)2 3,100 3,205
DP World Crescent 4.848% 20281 4,700 5,164
ENA Norte Trust 4.95% 2028 1,591 1,648


American Funds Emerging Markets Bond Fund 5

Bonds, notes & other debt instruments (continued) Principal amount
(000) Value
(000)
Corporate bonds & notes (continued)
Industrials (continued)
Mexico City Airport Trust 5.50% 2046 $ 2,088 $ 2,160
Mexico City Airport Trust 5.50% 2047 8,212 8,497
Other securities 6,115
28,060

Energy 2.52%
Petrobras Global Finance Co. 8.75% 2026 1,550 1,993
Petróleos Mexicanos 7.19% 2024 MXN 111,770 5,409
Petróleos Mexicanos 7.47% 2026 203,270 9,457
Petróleos Mexicanos 6.49%–6.88% 2026–20291 $ 2,937 3,154
Other securities 3,873
23,886

Financials 1.30%
CCCI Treasure Ltd., 3.50%
(UST Yield Curve Rate T Note Constant Maturity 5-year + 7.192% on 4/21/2020)2 3,621 3,630
Industrial and Commercial Bank of China Ltd. 3.538% 2027 2,900 3,009
Leader Goal International Ltd. 4.25%2 1,530 1,565
Other securities 4,133
12,337

Materials 1.18%
Other securities 11,188

Utilities 1.12%
Other securities 10,585

Other 0.40%
Other securities 3,763

Total corporate bonds & notes 89,819

U.S. Treasury bonds & notes 1.61%
U.S. Treasury 0.93%
U.S. Treasury 1.625% 20296 9,000 8,767

U.S. Treasury inflation-protected securities 0.68%
U.S. Treasury Inflation-Protected Securities 0.13%–0.50% 20244 6,384 6,465

Total U.S. Treasury bonds & notes 15,232

Total bonds, notes & other debt instruments (cost: $882,022,000) 884,326

Short-term securities 4.55% Shares
Money market investments 3.53%
Capital Group Central Cash Fund 1.73%7 334,894 33,489

Principal amount
(000)
Other short-term securities 1.02%
Argentinian Treasury Bills (3.88%)–58.68% due 7/29/2020–7/31/2020 ARS 231,787 2,555
Egyptian Treasury Bills 13.37%–13.74% due 5/12/2020–7/28/2020 EGP 119,600 7,101
9,656

Total short-term securities (cost: $47,621,000) 43,145
Total investment securities 97.89% (cost: $929,643,000) 927,471
Other assets less liabilities 2.11% 19,971

Net assets 100.00% $ 947,442


6 American Funds Emerging Markets Bond Fund

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.



Futures contracts



Contracts Type Number of
contracts Expiration Notional
amount
(000) 8 Value at
12/31/2019
(000) 9 Unrealized
(depreciation)
appreciation
at 12/31/2019
(000)
2 Year U.S. Treasury Note Futures Long 478 April 2020 $ 95,600 $ 103,009 $ (53 )
5 Year U.S. Treasury Note Futures Long 273 April 2020 27,300 32,381 (113 )
10 Year Euro-Bund Futures Short 100 March 2020 € (10,000 ) (19,124 ) 182
10 Year Ultra U.S. Treasury Note Futures Long 212 March 2020 $ 21,200 29,829 (359 )
30 Year Ultra U.S. Treasury Bond Futures Short 43 March 2020 (4,300 ) (7,811 ) 242
$ (101 )


Forward currency contracts



Contract amount Unrealized
appreciation
(depreciation)
Purchases
(000) Sales
(000) Counterparty Settlement
date at 12/31/2019
(000)
MXN35,000 USD1,792 Goldman Sachs 1/6/2020 $ 58
EUR3,929 USD4,368 Standard Chartered Bank 1/6/2020 40
EUR2,900 USD3,219 Standard Chartered Bank 1/6/2020 36
CZK124,460 EUR4,868 Barclays Bank PLC 1/6/2020 28
USD1,088 THB32,900 JPMorgan Chase 1/6/2020 (10 )
USD7,581 EUR6,829 JPMorgan Chase 1/6/2020 (82 )
EUR115 USD127 HSBC Bank 1/7/2020 2
EUR410 USD458 UBS AG 1/7/2020 2
USD128 EUR115 Standard Chartered Bank 1/7/2020 (1 )
USD453 EUR410 HSBC Bank 1/7/2020 (7 )
USD3,767 ZAR55,440 Bank of New York Mellon 1/7/2020 (188 )
EUR2,200 USD2,458 Citibank 1/8/2020 11
USD2,449 EUR2,200 JPMorgan Chase 1/8/2020 (20 )
EUR1,185 USD1,318 Standard Chartered Bank 1/9/2020 12
USD2,318 EUR2,085 Morgan Stanley 1/9/2020 (22 )
USD5,091 PEN17,290 JPMorgan Chase 1/10/2020 (126 )
EUR4,282 USD4,763 Standard Chartered Bank 1/13/2020 44
USD2,111 THB64,000 Standard Chartered Bank 1/13/2020 (26 )
USD4,754 EUR4,282 HSBC Bank 1/13/2020 (53 )
USD1,823 MXN35,000 Citibank 1/15/2020 (23 )
PLN45,873 EUR10,685 Bank of America 1/16/2020 94
KRW10,400,000 USD8,922 Citibank 1/16/2020 75
USD2,258 INR160,700 Standard Chartered Bank 1/16/2020 10
PLN6,163 EUR1,440 Citibank 1/16/2020 8
USD2,354 MXN45,100 Citibank 1/16/2020 (26 )
USD7,689 BRL32,000 Standard Chartered Bank 1/16/2020 (261 )
PLN26,614 EUR6,220 Goldman Sachs 1/17/2020 31
CZK113,491 EUR4,450 Citibank 1/17/2020 9
USD402 ZAR5,850 Standard Chartered Bank 1/17/2020 (15 )
EUR6,955 USD7,777 Citibank 1/21/2020 35
USD7,779 EUR6,955 Morgan Stanley 1/21/2020 (33 )
USD1,498 ZAR21,700 HSBC Bank 1/21/2020 (47 )
CZK182,846 EUR7,180 JPMorgan Chase 1/23/2020 — 10
BRL10,600 USD2,603 JPMorgan Chase 1/27/2020 30
EUR2,880 USD3,211 Standard Chartered Bank 1/27/2020 25
USD1,963 EUR1,760 JPMorgan Chase 1/27/2020 (15 )
USD10,503 MXN200,000 UBS AG 1/27/2020 (30 )
USD4,848 BRL19,800 JPMorgan Chase 1/27/2020 (71 )
CNH16,000 USD2,261 Standard Chartered Bank 2/10/2020 36


American Funds Emerging Markets Bond Fund 7

Forward currency contracts (continued)



Contract amount Unrealized
appreciation
(depreciation)
Purchases
(000) Sales
(000) Counterparty Settlement
date at 12/31/2019
(000)
USD2,240 CNH15,800 Citibank 2/10/2020 $ (28 )
USD4,701 CNH33,600 Standard Chartered Bank 2/10/2020 (122 )
USD4,471 INR320,000 JPMorgan Chase 3/12/2020 21
USD1,811 INR130,000 JPMorgan Chase 3/13/2020 4
INR129,680 USD1,803 HSBC Bank 3/13/2020 — 10
USD4,339 EUR3,755 Bank of America 3/26/2020 104
EUR2,000 USD2,245 UBS AG 3/26/2020 10
USD10,597 EUR9,438 Standard Chartered Bank 6/12/2020 (99 )
USD19,968 EUR17,695 Citibank 6/19/2020 (95 )
CZK58,470 USD2,547 Standard Chartered Bank 10/21/2020 32
PLN9,750 USD2,546 Citibank 10/21/2020 24
RON16,508 EUR3,350 HSBC Bank 10/21/2020 (7 )
USD2,534 CZK58,470 Bank of America 10/21/2020 (46 )
$ (672 )


Swap contracts



Interest rate swaps



Receive Pay Expiration
date Notional
(000) Value at
12/31/2019
(000) Upfront
payments/
receipts
(000) Unrealized
appreciation
(depreciation)
at 12/31/2019
(000)
2.655% 3-month USD-LIBOR 12/30/2024 $ 36,300 $ 1,603 $ — $ 1,603
6.95% 28-day MXN-TIIE 8/8/2029 MXN 88,500 50 — 50
3-month USD-LIBOR 2.795% 12/30/2029 $ 19,300 (1,600 ) — (1,600 )
$ — $ 53


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 Acquired in a transaction exempt from registration under Rule 144A 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 $125,946,000, which represented 13.29% of the net assets of the fund.
2 Step bond; coupon rate may change at a later date.
3 Scheduled interest and/or principal payment was not received.
4 Index-linked bond whose principal amount moves with a government price index.
5 Coupon rate may change periodically. Reference rate and spread are as of the most recent information available. Some coupon rates are determined by the issuer or agent based on current market conditions; therefore, the reference rate and spread are not available.
6 All or a portion of this security was pledged as collateral. The total value of pledged collateral was $1,196,000, which represented .13% of the net assets of the fund.
7 Rate represents the seven-day yield at 12/31/2019.
8 Notional amount is calculated based on the number of contracts and notional contract size.
9 Value is calculated based on the notional amount and current market price.
10 Amount less than one thousand.


Key to abbreviations and symbols

ARS = Argentine pesos

BRL = Brazilian reais

CNH/CNY = Chinese yuan renminbi

COP = Colombian pesos

CZK = Czech korunas

DOP = Dominican pesos

EGP = Egyptian pounds

EUR/€ = Euros

IDR = Indonesian rupiah

INR = Indian rupees

KRW = South Korean won

LIBOR = London Interbank Offered Rate

MXN = Mexican pesos

MYR = Malaysian ringgits

PEN = Peruvian nuevos soles

PLN = Polish zloty

RON = Romanian leu

RUB = Russian rubles

THB = Thai baht

TIIE = Equilibrium Interbank Interest Rate

TRY = Turkish lira

UAH = Ukrainian hryvnia

USD/$ = U.S. dollars

ZAR = South African rand



See notes to financial statements.



8 American Funds Emerging Markets Bond Fund

Financial statements



Statement of assets and liabilities
at December 31, 2019 (dollars in thousands)




Assets:
Investment securities in unaffiliated issuers, at value (cost: $929,643) $ 927,471
Cash 543
Cash collateral pledged for futures contracts 346
Cash collateral pledged for swap contracts 647
Cash denominated in currencies other than U.S. dollars (cost: $688) 701
Unrealized appreciation on open forward currency contracts 781
Receivables for:
Sales of fund’s shares $ 3,842
Dividends and interest 17,462
Variation margin on futures contracts 198
Variation margin on swap contracts 66
Other 134 21,702
952,191
Liabilities:
Unrealized depreciation on open forward currency contracts 1,453
Payables for:
Purchases of investments 38
Repurchases of fund’s shares 1,621
Dividends on fund’s shares 566
Investment advisory services 431
Services provided by related parties 73
Trustees’ deferred compensation 3
Variation margin on futures contracts 43
Variation margin on swap contracts 58
Non-U.S. taxes 425
Other 38 3,296
Net assets at December 31, 2019 $ 947,442

Net assets consist of:
Capital paid in on shares of beneficial interest $ 950,164
Total accumulated loss (2,722 )
Net assets at December 31, 2019 $ 947,442


See notes to financial statements.



American Funds Emerging Markets Bond Fund 9

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



Shares of beneficial interest issued and outstanding (no stated par value) —
unlimited shares authorized (95,284 total shares outstanding)



Net assets Shares
outstanding Net asset value
per share
Class A $ 387,365 38,957 $ 9.94
Class C 28,013 2,817 9.94
Class T 10 1 9.94
Class F-1 13,200 1,328 9.94
Class F-2 213,402 21,462 9.94
Class F-3 111,498 11,213 9.94
Class 529-A 8,295 834 9.94
Class 529-C 1,370 138 9.94
Class 529-E 1,123 113 9.94
Class 529-T 12 1 9.94
Class 529-F-1 4,199 422 9.94
Class R-1 104 10 9.94
Class R-2 1,228 124 9.94
Class R-2E 671 68 9.94
Class R-3 1,992 200 9.94
Class R-4 1,052 106 9.94
Class R-5E 227 23 9.94
Class R-5 740 74 9.94
Class R-6 172,941 17,393 9.94


See notes to financial statements.



10 American Funds Emerging Markets Bond Fund

Statement of operations
for the year ended December 31, 2019 (dollars in thousands)





Investment income:
Income:
Interest (net of non-U.S. taxes of $430) $ 61,445
Dividends 317 $ 61,762
Fees and expenses*:
Investment advisory services 4,628
Distribution services 1,144
Transfer agent services 740
Administrative services 265
Reports to shareholders 62
Registration statement and prospectus 293
Trustees’ compensation 4
Auditing and legal 57
Custodian 248
Other 41
Total fees and expenses before reimbursements/waiver 7,482
Less reimbursements/waiver of fees and expenses:
Miscellaneous fee reimbursements 200
Transfer agent services fee waiver 28
Transfer agent services fee reimbursement — †
Total fees and expenses after reimbursements/waiver 7,254
Net investment income 54,508

Net realized loss and unrealized appreciation:
Net realized (loss) gain on:
Investments in unaffiliated issuers (net of non-U.S. taxes of $310) (7,279 )
Futures contracts 2,408
Forward currency contracts 1,990
Swap contracts 19
Currency transactions (979 ) (3,841 )
Net unrealized appreciation (depreciation) on:
Investments in unaffiliated issuers (net of non-U.S. taxes of $202) 57,832
Futures contracts (758 )
Forward currency contracts (2,664 )
Swap contracts (2 )
Currency translations 173 54,581
Net realized loss and unrealized appreciation 50,740

Net increase in net assets resulting from operations $ 105,248


* Additional information related to class-specific fees and expenses is included in the notes to financial statements.
† Amount less than one thousand.


See notes to financial statements.



American Funds Emerging Markets Bond Fund 11

Statements of changes in net assets
(dollars in thousands)


Year ended December 31,
2019 2018
Operations:
Net investment income $ 54,508 $ 41,470
Net realized loss (3,841 ) (18,049 )
Net unrealized appreciation (depreciation) 54,581 (61,376 )
Net increase (decrease) in net assets resulting from operations 105,248 (37,955 )

Distributions paid or accrued and return of capital paid to shareholders:
Distributions (33,743 ) (39,645 )
Return of capital (23,387 ) (1,236 )
Total distributions paid or accrued and return of capital paid to shareholders (57,130 ) (40,881 )

Net capital share transactions 205,554 439,567

Total increase in net assets 253,672 360,731

Net assets:
Beginning of year 693,770 333,039
End of year $ 947,442 $ 693,770


See notes to financial statements.



12 American Funds Emerging Markets Bond Fund

Notes to financial statements



1. Organization



American Funds Emerging Markets Bond Fund (the “fund”) is registered under the Investment Company Act of 1940 (the “1940 Act”), as an open-end, nondiversified management investment company. The fund seeks to provide a high level of total return over the long term, of which current income is a large component.



The fund has 19 share classes consisting of six retail share classes (Classes A, C, T, F-1, F-2 and F-3), five 529 college savings plan share classes (Classes 529-A, 529-C, 529-E, 529-T and 529-F-1) and eight retirement plan share classes (Classes R-1, R-2, R-2E, R-3, R-4, R-5E, 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 3.75% None (except 1% for certain redemptions within 18 months of purchase without an initial sales charge) None
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 Class 529-C converts to Class 529-A after 10 years
Class 529-E None None None
Classes T and 529-T* Up to 2.50% None None
Classes F-1, F-2, F-3 and 529-F-1 None None None
Classes R-1, R-2, R-2E, R-3, R-4, R-5E, R-5 and R-6 None None None
*Class T and 529-T shares are not available for purchase.



Holders of all share classes have equal pro rata rights to the assets, dividends and liquidation proceeds of the fund. 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, transfer agent and administrative 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.



2. Significant accounting policies



The fund is an investment company that applies the accounting and reporting guidance issued in Topic 946 by the U.S. Financial Accounting Standards Board. The fund’s financial statements have been prepared to comply with U.S. generally accepted accounting principles (“U.S. GAAP”). These principles require the fund’s investment adviser to make estimates and assumptions that affect reported amounts and disclosures. Actual results could differ from those estimates. Subsequent events, if any, have been evaluated through the date of issuance in the preparation of the financial statements. 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, transfer agent and administrative services, are charged directly to the respective share class.



American Funds Emerging Markets Bond Fund 13

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



Currency translation — Assets and liabilities, including investment securities, denominated in currencies other than U.S. dollars are translated into U.S. dollars at the exchange rates supplied by one or more pricing vendors on the valuation date. Purchases and sales of investment securities and income and expenses are translated into U.S. dollars at the exchange rates on the dates of such transactions. The effects of changes in exchange rates on investment securities are included with the net realized gain or loss and net unrealized appreciation or depreciation on investments in the fund’s statement of operations. The realized gain or loss and unrealized appreciation or depreciation resulting from all other transactions denominated in currencies other than U.S. dollars are disclosed separately.



3. Valuation



Capital Research and Management Company (“CRMC”), the fund’s investment adviser, values the fund’s investments at fair value as defined by U.S. GAAP. 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.



Fixed-income securities, including short-term securities, 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 deemed to be not 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. The Capital Group Central Cash Fund (“CCF”), a fund within the Capital Group Central Fund Series (“Central Funds”), is valued based upon a floating net asset value, which fluctuates with changes in the value of CCF’s portfolio securities. The underlying securities are valued based on the policies and procedures in CCF’s statement of additional information.



Exchange-traded futures are generally valued at the official settlement price of the exchange or market on which such instruments are traded, as of the close of business on the day the futures are being valued. 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. 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



14 American Funds Emerging Markets Bond Fund

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. In addition, the closing prices of equity securities that trade in markets outside U.S. time zones may be adjusted to reflect significant events that occur after the close of local trading but before the net asset value of each share class of the fund is determined. 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. The fund’s board and audit committee also regularly review reports that describe fair value determinations and methods.



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



Classifications — The fund’s investment adviser classifies the fund’s assets and liabilities into three levels based on the inputs used to value the assets or liabilities. Level 1 values are based on quoted prices in active markets for identical securities. Level 2 values are based on significant observable market inputs, such as quoted prices for similar securities and quoted prices in inactive markets. Certain securities trading outside the U.S. may transfer between Level 1 and Level 2 due to valuation adjustments resulting from significant market movements following the close of local trading. 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. The following tables present the fund’s valuation levels as of December 31, 2019 (dollars in thousands):



Investment securities
Level 1 Level 2 Level 3 Total
Bonds, notes & other debt instruments:
Bonds & notes of governments & government agencies outside the U.S. $ — $ 779,275 $ — $ 779,275
Corporate bonds & notes — 89,819 — 89,819
U.S. Treasury bonds & notes — 15,232 — 15,232
Short-term securities 33,489 9,656 — 43,145
Total $ 33,489 $ 893,982 $ — $ 927,471

Other investments*
Level 1 Level 2 Level 3 Total
Assets:
Unrealized appreciation on futures contracts $ 424 $ — $ — $ 424
Unrealized appreciation on open forward currency contracts — 781 — 781
Unrealized appreciation on interest rate swaps — 1,653 — 1,653
Liabilities:
Unrealized depreciation on futures contracts (525 ) — — (525 )
Unrealized depreciation on open forward currency contracts — (1,453 ) — (1,453 )
Unrealized depreciation on interest rate swaps — (1,600 ) — (1,600 )
Total $ (101 ) $ (619 ) $ — $ (720 )


* Futures contracts, forward currency contracts and interest rate swaps are not included in the investment portfolio.


American Funds Emerging Markets Bond Fund 15

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 — sometimes rapidly or unpredictably — due to various factors, including events or conditions affecting the general economy or particular industries; overall market changes; local, regional or global political, social or economic instability; governmental, governmental agency or central bank responses to economic conditions; and currency exchange rate, interest rate and commodity price fluctuations.



Issuer risks — The prices of, and the income generated by, securities held by the fund may decline in response to various factors directly related to the issuers of such securities, including reduced demand for an issuer’s goods or services, poor management performance, major litigation related to the issuer, changes in government regulations affecting the issuer or its competitive environment and strategic initiatives such as mergers, acquisitions or dispositions and the market response to any such initiatives.



Investing in debt instruments — The prices of, and the income generated by, 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.



Rising interest rates will generally cause the prices of bonds and other debt securities to fall. A general rise in interest rates may cause investors to sell debt securities on a large scale, which could also adversely affect the price and liquidity of debt securities and could also result in increased redemptions from the fund. 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 failing to recoup the full amount of its initial investment and having to reinvest the proceeds in lower yielding securities. Longer maturity debt securities generally have greater sensitivity to changes in interest rates and may be subject to greater price fluctuations than shorter maturity debt securities.



Bonds and other debt securities are also subject to credit risk, which is the possibility that the credit strength of an issuer or guarantor will weaken or be perceived to be weaker, 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. A downgrade or default affecting any of the fund’s securities could cause the value of the fund’s shares to decrease. 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 debt 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 assess credit and default risks.



Investing in lower rated debt instruments — Lower rated bonds and other lower rated debt securities generally have higher rates of interest and involve greater risk of default or price declines due to changes in the issuer’s creditworthiness than those of higher quality debt securities. The market prices of these securities may fluctuate more than the prices of higher quality debt securities and may decline significantly in periods of general economic difficulty. These risks may be increased with respect to investments in junk bonds.



Investing in derivatives — The use of derivatives involves a variety of risks, which may be different from, or greater than, the risks associated with investing in traditional securities, such as stocks and bonds. Changes in the value of a derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate or index, and a derivative instrument may expose the fund to losses in excess of its initial investment. Derivatives may be difficult to value, difficult for the fund to buy or sell at an opportune time or price and difficult, or even impossible, to terminate or otherwise offset. The fund’s use of derivatives may result in losses to the fund, and investing in derivatives may reduce the fund’s returns and increase the fund’s price volatility. The fund’s counterparty to a derivative transaction (including, if applicable, the fund’s clearing broker, the derivatives exchange or the clearinghouse) may be unable or unwilling to honor its financial obligations in respect of the transaction. In certain cases, the fund may be hindered or delayed in exercising remedies against or closing out derivative instruments with a counterparty, which may result in additional losses.



Liquidity risk — Certain fund holdings may be or may become difficult or impossible to sell, particularly during times of market turmoil. Liquidity may be impacted by the lack of an active market for a holding, legal or contractual restrictions on resale, or the reduced number and capacity of market participants to make a market in such holding. Market prices for less liquid or illiquid holdings may be volatile, and reduced liquidity may have an adverse impact on the market price of such holdings. Additionally, the sale of less liquid or illiquid holdings may involve substantial delays (including delays in settlement) and additional costs and the fund may be unable to sell such holdings when necessary to meet its liquidity needs or may be forced to sell at a loss.



Investing outside the U.S. — Securities of issuers domiciled outside the U.S., or with significant operations or revenues outside the U.S., may lose value because of adverse political, social, economic or market developments (including social instability, regional conflicts,



16 American Funds Emerging Markets Bond Fund

terrorism and war) in the countries or regions in which the issuers operate or generate revenue. These securities may also lose value due to changes in foreign currency exchange rates against the U.S. dollar and/or currencies of other countries. Issuers of these securities may be more susceptible to actions of foreign governments, such as nationalization, currency blockage or the imposition of price controls or punitive taxes, each of which could adversely impact the value of these securities. Securities markets in certain countries may be more volatile and/or less liquid than those in the U.S. Investments outside the U.S. may also be subject to different accounting practices and different regulatory, legal and reporting standards and practices, and may be more difficult to value, than those in the U.S. In addition, the value of investments outside the U.S. may be reduced by foreign taxes, including foreign withholding taxes on interest and dividends. Further, there may be increased risks of delayed settlement of securities purchased or sold by the fund. The risks of investing outside the U.S. may be heightened in connection with investments in emerging markets.



Investing in emerging markets — Investing in emerging markets may involve risks in addition to and greater than those generally associated with investing in the securities markets of developed countries. For instance, emerging market countries may have less developed legal and accounting systems than those in developed countries. The governments of these countries may be less stable and more likely to impose capital controls, nationalize a company or industry, place restrictions on foreign ownership and on withdrawing sale proceeds of securities from the country, and/or impose punitive taxes that could adversely affect the prices of securities. In addition, the economies of these countries may be dependent on relatively few industries that are more susceptible to local and global changes. Securities markets in these countries can also be relatively small and have substantially lower trading volumes. As a result, securities issued in these countries may be more volatile and less liquid, and may be more difficult to value, than securities issued in countries with more developed economies and/or markets. Less certainty with respect to security valuations may lead to additional challenges and risks in calculating the fund’s net asset value. Additionally, emerging markets are more likely to experience problems with the clearing and settling of trades and the holding of securities by banks, agents and depositories that are less established than those in developed countries.



Currency — The prices of, and the income generated by, many debt securities held by the fund may also be affected by changes in relative currency values. If the U.S. dollar appreciates against foreign currencies, the value in U.S. dollars of the fund’s securities denominated in such currencies would generally fall and vice versa. U.S. dollar-denominated securities of foreign issuers may also be affected by changes in relative currency values.



Nondiversification risk — As a nondiversified fund, the fund has the ability to invest a larger percentage of its assets in the securities of a smaller number of issuers than a diversified fund. Poor performance by a single large holding could adversely impact the fund’s investment results more than if the fund were invested in a larger number of issuers.



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, including models, tools and data, employed by the investment adviser in this process may be flawed or incorrect and 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



Index-linked bonds — The fund has invested in index-linked bonds, which are fixed-income securities whose principal value is periodically adjusted to a government price index. Over the life of an index-linked bond, interest is paid on the adjusted principal value. Increases or decreases in the principal value of index-linked bonds are recorded as interest income in the fund’s statement of operations.



Futures contracts — The fund has entered into futures contracts, which provide for the future sale by one party and purchase by another party of a specified amount of a specific financial instrument for a specified price, date, time and place designated at the time the contract is made. Futures contracts are used to strategically manage the fund’s interest rate sensitivity by increasing or decreasing the duration of the fund or a portion of the fund’s portfolio.



Upon entering into futures contracts, and to maintain the fund’s open positions in futures contracts, the fund is required to deposit with a futures broker, known as a futures commission merchant (“FCM”), in a segregated account in the name of the FCM an amount of cash, U.S. government securities or other liquid securities, known as initial margin. The margin required for a particular futures contract is set by the exchange on which the contract is traded to serve as collateral, and may be significantly modified from time to time by the exchange during the term of the contract. Securities deposited as initial margin, if any, are disclosed in the investment portfolio and cash deposited as initial margin, if any, is reflected as cash pledged for futures contracts in the fund’s statement of assets and liabilities.



On a daily basis, the fund pays or receives variation margin based on the increase or decrease in the value of the futures contracts and records variation margin on futures contracts in the statement of assets and liabilities. In addition, the fund segregates liquid assets



American Funds Emerging Markets Bond Fund 17

equivalent to the fund’s outstanding obligations under the contract in excess of the initial margin and variation margin, if any. Futures contracts may involve a risk of loss in excess of the variation margin shown on the fund’s statement of assets and liabilities. The fund records realized gains or losses at the time the futures contract is closed or expires. Net realized gains or losses and net unrealized appreciation or depreciation from futures contracts are recorded in the fund’s statement of operations. The average month-end notional amount of futures contracts while held was $81,079,000.



Forward currency contracts — The fund has entered into forward currency contracts, which represent agreements to exchange currencies on specific future dates at predetermined rates. The fund’s investment adviser uses forward currency contracts to manage the fund’s exposure to changes in exchange rates. Upon entering into these contracts, risks may arise from the potential inability of counterparties to meet the terms of their contracts and from possible movements in exchange rates.



On a daily basis, the fund’s investment adviser values forward currency contracts and records unrealized appreciation or depreciation for open forward currency contracts in the fund’s statement of assets and liabilities. Realized gains or losses are recorded at the time the forward currency contract is closed or offset by another contract with the same broker for the same settlement date and currency.



Closed forward currency contracts that have not reached their settlement date are included in the respective receivables or payables for closed forward currency contracts in the fund’s statement of assets and liabilities. Net realized gains or losses from closed forward currency contracts and net unrealized appreciation or depreciation from open forward currency contracts are recorded in the fund’s statement of operations. The average month-end notional amount of open forward currency contracts while held was $129,566,000.



Interest rate swaps — The fund has entered into interest rate swap contracts, 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 seek 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. 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 average month-end notional amount of interest rate swaps while held was $58,277,000.



18 American Funds Emerging Markets Bond Fund

The following tables identify the location and fair value amounts on the fund’s statement of assets and liabilities and the effect on the fund’s statement of operations resulting from the fund’s use of futures contracts, forward currency contracts and interest rate swaps as of, or for the year ended, December 31, 2019 (dollars in thousands):



Assets Liabilities
Contracts Risk type Location on statement of
assets and liabilities Value Location on statement of
assets and liabilities Value
Futures Interest Unrealized appreciation* $ 424 Unrealized depreciation* $ 525
Forward currency Currency Unrealized appreciation on open forward currency contracts 781 Unrealized depreciation on open forward currency contracts 1,453
Swap Interest Unrealized appreciation* 1,653 Unrealized depreciation* 1,600
$ 2,858 $ 3,578


Net realized gain Net unrealized depreciation
Contracts Risk type Location on statement of
operations Value Location on statement of
operations Value
Futures Interest Net realized gain on futures contracts $ 2,408 Net unrealized depreciation on futures contracts $ (758 )
Forward currency Currency Net realized gain on forward currency contracts 1,990 Net unrealized depreciation on forward currency contracts (2,664 )
Swap Interest Net realized gain on swap contracts 19 Net unrealized depreciation on swap contracts (2 )
$ 4,417 $ (3,424 )


* Includes cumulative appreciation/depreciation on futures contracts and interest rate swaps as reported in the applicable tables following the fund’s investment portfolio. Only current day’s variation margin is reported within the statement of assets and liabilities.


Collateral — The fund participates in a collateral program that calls for the fund to either receive or pledge highly liquid assets, such as cash or U.S. government securities, as collateral due to its use of futures contracts, forward currency contracts and interest rate swaps. For futures contracts and interest rate swaps, the program calls for the fund to pledge collateral for initial and variation margin by contract. For forward currency contracts, the program calls for the fund to either receive or pledge collateral based on the net gain or loss on unsettled forward currency contracts by counterparty. The purpose of the collateral is to cover potential losses that could occur in the event that either party cannot meet its contractual obligation. Non-cash collateral pledged by the fund, if any, is disclosed in the fund’s investment portfolio, and cash collateral pledged by the fund, if any, is held in a segregated account with the fund’s custodian, which is reflected as pledged cash in the fund’s statement of assets and liabilities.



Rights of offset — The fund has entered into enforceable master netting agreements with certain counterparties for forward currency contracts, where on any date amounts payable by each party to the other (in the same currency with respect to the same transaction) may be closed or offset by each party’s payment obligation. If an early termination date occurs under these agreements following an event of default or termination event, all obligations of each party to its counterparty are settled net through a single payment in a single currency (“close-out netting”). For financial reporting purposes, the fund does not offset financial assets and financial liabilities that are subject to these master netting arrangements in the statement of assets and liabilities.



American Funds Emerging Markets Bond Fund 19

The following table presents the fund’s forward currency contracts by counterparty that are subject to master netting agreements but that are not offset in the fund’s statement of assets and liabilities. The net amount column shows the impact of offsetting on the fund’s statement of assets and liabilities as of December 31, 2019, if close-out netting was exercised (dollars in thousands):



Gross amounts
recognized in the Gross amounts not offset in the
statement of assets and liabilities and
subject to a master netting agreement
Counterparty statement of assets
and liabilities Available
to offset Non-cash
collateral* Cash
collateral* Net
amount
Assets:
Bank of America $ 198 $ (46 ) $ — $ (152 ) $ —
Barclays Bank PLC 28 — — — 28
Citibank 162 (162 ) — — —
Goldman Sachs 89 — — — 89
HSBC Bank 2 (2 ) — — —
JPMorgan Chase 55 (55 ) — — —
Standard Chartered Bank 235 (235 ) — — —
UBS AG 12 (12 ) — — —
Total $ 781 $ (512 ) $ — $ (152 ) $ 117
Liabilities:
Bank of America $ 46 $ (46 ) $ — $ — $ —
Bank of New York Mellon 188 — — — 188
Citibank 172 (162 ) — — 10
HSBC Bank 114 (2 ) (112 ) — —
JPMorgan Chase 324 (55 ) — — 269
Morgan Stanley 55 — (44 ) — 11
Standard Chartered Bank 524 (235 ) (260 ) — 29
UBS AG 30 (12 ) — — 18
Total $ 1,453 $ (512 ) $ (416 ) $ — $ 525


* Collateral is shown on a settlement basis.


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 December 31, 2019, 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 significant interest or penalties.



The fund’s tax returns are not subject to examination by federal, state and, if applicable, non-U.S. tax authorities after the expiration of each jurisdiction’s statute of limitations, which is generally three years after the date of filing but can be extended in certain jurisdictions.



Non-U.S. taxation — Dividend and interest income are recorded net of non-U.S. taxes paid. The fund may file withholding tax reclaims in certain jurisdictions to recover a portion of amounts previously withheld. These reclaims are recorded when the amount is known and there are no significant uncertainties on collectability. Gains realized by the fund on the sale of securities in certain countries, if any, may be subject to non-U.S. taxes. If applicable, the fund records an estimated deferred tax liability based on unrealized gains to provide for potential non-U.S. taxes payable upon the sale of these securities.



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 currency gains and losses; short-term capital gains and losses; capital losses related to sales of certain securities within 30 days of purchase; cost of investments sold; net capital losses; non-U.S. taxes on capital gains; amortization of premiums and discounts 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 December 31, 2019, the fund utilized capital loss carryforward of $6,233,000.



20 American Funds Emerging Markets Bond Fund

As of December 31, 2019, the tax basis components of distributable earnings, unrealized appreciation (depreciation) and cost of investments were as follows (dollars in thousands):



Distributions in excess of ordinary income $ 23,387
Gross unrealized appreciation on investments 46,541
Gross unrealized depreciation on investments (49,331 )
Net unrealized depreciation on investments (2,790 )
Cost of investments 929,541


For the year ended December 31, 2019, the fund’s distributions exceeded total taxable income and net realized gains or losses resulting in a return of capital for tax purposes. Distributions paid or accrued were characterized for tax purposes as follows (dollars in thousands):



Year ended December 31, 2019 Year ended December 31, 2018
Share class Ordinary
income Long-term
capital gains Return of
capital Total
paid or
accrued Ordinary
income Long-term
capital gains Return of
capital Total
paid or
accrued
Class A $ 12,293 $ 1,116 $ 9,277 $ 22,686 $ 16,699 $ 49 $ 522 $ 17,270
Class C 722 81 548 1,351 920 3 29 952
Class T — * — * — * — * 1 — * — * 1
Class F-1 454 38 341 833 851 2 26 879
Class F-2 7,756 616 5,812 14,184 10,356 33 324 10,713
Class F-3 2,483 323 1,946 4,752 2,498 7 78 2,583
Class 529-A 242 23 184 449 328 1 10 339
Class 529-C 36 4 27 67 48 — * 2 50
Class 529-E 33 3 25 61 31 — * 1 32
Class 529-T — * — * — * — * 1 — * — * 1
Class 529-F-1 75 12 59 146 61 — * 2 63
Class R-1 3 — * 3 6 5 — * — * 5
Class R-2 34 4 25 63 34 — * 1 35
Class R-2E 21 2 16 39 24 — * 1 25
Class R-3 56 6 42 104 67 — * 2 69
Class R-4 38 3 28 69 39 — * 1 40
Class R-5E 443 1 308 752 4 — * — * 4
Class R-5 20 2 15 37 24 — * 1 25
Class R-6 6,302 498 4,731 11,531 7,533 26 236 7,795
Total $ 31,011 $ 2,732 $ 23,387 $ 57,130 $ 39,524 $ 121 $ 1,236 $ 40,881


* Amount less than one thousand.


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. At the beginning of the year, these fees were based on an annual rate of 0.570% of daily net assets. On March 4, 2019, the fund’s board of trustees approved an amended investment advisory and service agreement effective May 1, 2019, decreasing the annual rate to 0.553% of daily net assets. For the year ended December 31, 2019, the investment advisory services fee was $4,628,000, which was equivalent to an annualized rate of 0.558% of average daily net assets.



Miscellaneous fee reimbursements — CRMC has agreed to reimburse a portion of miscellaneous fees and expenses of the fund. This reimbursement may be adjusted or discontinued by CRMC, subject to any restrictions in the fund’s prospectus. For the year ended December 31, 2019, total fees and expenses reimbursed by CRMC were $200,000. Fees and expenses in the statement of operations are presented gross of any reimbursements from CRMC.



American Funds Emerging Markets Bond Fund 21

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 further described below:



Distribution services — The fund has plans of distribution for all share classes, except Class F-2, F-3, R-5E, 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.



Share class Currently approved limits Plan limits
Class A 0.30 % 0.30 %
Class 529-A 0.30 0.50
Classes C, 529-C and R-1 1.00 1.00
Class R-2 0.75 1.00
Class R-2E 0.60 0.85
Classes 529-E and R-3 0.50 0.75
Classes T, F-1, 529-T, 529-F-1 and R-4 0.25 0.50


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 limits are not exceeded. As of December 31, 2019, there were no unreimbursed expenses subject to reimbursement for Class A or 529-A shares.



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. For the year ended December 31, 2019, AFS voluntarily waived transfer agent services fees of $28,000 for Class F-3 shares and CRMC reimbursed transfer agent services fees of less than $1,000 for Class R-1 shares.



Administrative services — The fund has an administrative services agreement with CRMC under which the fund compensates CRMC for providing administrative services to all share classes. Administrative services are provided by CRMC and its affiliates to help assist third parties providing non-distribution services to fund shareholders. These services include providing in depth information on the fund and market developments that impact fund investments. Administrative services also include, but are not limited to, coordinating, monitoring and overseeing third parties that provide services to fund shareholders. The agreement provides the fund the ability to charge an administrative services fee at the annual rate of 0.05% of the daily net assets attributable to each share class of the fund. Prior to July 1, 2019, Class A shares paid CRMC an administrative services fee at the annual rate of 0.01% of daily net assets and all other share classes paid a fee at the annual rate of 0.05% of their respective daily net assets. The fund’s board of trustees authorized the fund to pay CRMC effective July 1, 2019, an administrative services fee at the annual rate of 0.03% of the average daily net assets attributable to each share class of the fund (which could increase as noted above) for CRMC’s provision of administrative services.



529 plan services — Each 529 share class is subject to service fees to compensate the Virginia College Savings Plan (“Virginia529”) for its oversight and administration of the CollegeAmerica 529 college savings plan. The fee is based on the combined net assets invested in Class 529 and ABLE shares of the American Funds. Class ABLE shares are offered on other American Funds by Virginia529 through ABLEAmerica®, a tax-advantaged savings program for individuals with disabilities. The quarterly fee is based on a series of decreasing annual rates beginning with 0.10% on the first $20 billion of the combined net assets invested in the American Funds and decreasing to 0.03% on such assets in excess of $100 billion. Effective January 1, 2020, the quarterly fee will be amended to a series of decreasing annual rates beginning with 0.09% on the first $20 billion of the combined net assets invested in the American Funds and decreasing to 0.03% on such assets in excess of $100 billion. The fee for any given calendar quarter is accrued and calculated on the basis of the average net assets of Class 529 and ABLE 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. Virginia529 is not considered a related party to the fund.



22 American Funds Emerging Markets Bond Fund

For the year ended December 31, 2019, 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 $836 $384 $70 Not applicable
Class C 225 26 9 Not applicable
Class T — — * — * Not applicable
Class F-1 31 17 5 Not applicable
Class F-2 Not applicable 247 81 Not applicable
Class F-3 Not applicable 41 25 Not applicable
Class 529-A 15 7 3 $4
Class 529-C 11 1 — * 1
Class 529-E 5 — * — * 1
Class 529-T — — * — * — *
Class 529-F-1 — 2 1 1
Class R-1 1 — * — * Not applicable
Class R-2 7 3 — * Not applicable
Class R-2E 3 1 — * Not applicable
Class R-3 8 2 1 Not applicable
Class R-4 2 1 — * Not applicable
Class R-5E Not applicable 7 5 Not applicable
Class R-5 Not applicable — * — * Not applicable
Class R-6 Not applicable 1 65 Not applicable
Total class-specific expenses $1,144 $740 $265 $7


* Amount less than one thousand.


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 in the fund’s statement of operations reflects the current fees (either paid in cash or deferred) and a net increase or decrease 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.



Investment in CCF — The fund holds shares of CCF, an institutional prime money market fund managed by CRMC. CCF invests in high-quality, short-term money market instruments. CCF is used as the primary investment vehicle for the fund’s short-term investments. CCF shares are only available for purchase by CRMC, its affiliates, and other funds managed by CRMC or its affiliates, and are not available to the public. CRMC does not receive an investment advisory services fee from CCF.



Security transactions with related funds — The fund may purchase securities from, or sell securities to, other funds managed by CRMC (or funds managed by certain affiliates of CRMC) under procedures adopted by the fund’s board of trustees. The funds involved in such transactions are considered related by virtue of having a common investment adviser (or affiliated investment advisers), common trustees and/or common officers. When such transactions occur, each transaction is executed at the current market price of the security and no brokerage commissions or fees are paid in accordance with Rule 17a-7 of the 1940 Act.



Interfund lending — Pursuant to an exemptive order issued by the SEC, the fund, along with other CRMC-managed funds (or funds managed by certain affiliates of CRMC), may participate in an interfund lending program. The program provides an alternate credit facility that permits the funds to lend or borrow cash for temporary purposes directly to or from one another, subject to the conditions of the exemptive order. The fund did not lend or borrow cash through the interfund lending program at any time during the year ended December 31, 2019.



8. Committed line of credit



The fund participates with other funds managed by CRMC (or funds managed by certain affiliates of CRMC) in a $1.5 billion credit facility (the “line of credit”) to be utilized for temporary purposes to support shareholder redemptions. The fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which are reflected in other expenses in the fund’s statement of operations. The fund did not borrow on this line of credit at any time during the year ended December 31, 2019.



American Funds Emerging Markets Bond Fund 23

9. Capital share transactions



Capital share transactions in the fund were as follows (dollars and shares in thousands):



Sales* Reinvestments of
distributions Repurchases* Net increase
(decrease)
Share class Amount Shares Amount Shares Amount Shares Amount Shares

Year ended December 31, 2019

Class A $ 113,767 11,686 $ 18,566 1,903 $ (49,458 ) (5,086 ) $ 82,875 8,503
Class C 11,783 1,208 1,326 136 (4,213 ) (433 ) 8,896 911
Class T — — — — — — — —
Class F-1 7,134 733 827 85 (5,695 ) (585 ) 2,266 233
Class F-2 126,205 12,976 14,092 1,445 (101,964 ) (10,511 ) 38,333 3,910
Class F-3 70,116 7,207 4,539 464 (14,555 ) (1,493 ) 60,100 6,178
Class 529-A 3,441 353 446 46 (1,747 ) (180 ) 2,140 219
Class 529-C 617 63 66 7 (351 ) (36 ) 332 34
Class 529-E 371 37 62 6 (124 ) (12 ) 309 31
Class 529-T — — 1 — † — — 1 — †
Class 529-F-1 2,813 288 147 15 (347 ) (36 ) 2,613 267
Class R-1 3 — † 5 — † — † — † 8 — †
Class R-2 476 49 61 6 (123 ) (12 ) 414 43
Class R-2E 73 8 37 4 (14 ) (1 ) 96 11
Class R-3 816 84 102 10 (190 ) (19 ) 728 75
Class R-4 319 33 67 7 (181 ) (19 ) 205 21
Class R-5E 16,383 1,722 655 67 (17,205 ) (1,781 ) (167 ) 8
Class R-5 239 24 35 4 (4 ) (1 ) 270 27
Class R-6 17,679 1,837 11,420 1,171 (22,964 ) (2,374 ) 6,135 634
Total net increase (decrease) $ 372,235 38,308 $ 52,454 5,376 $ (219,135 ) (22,579 ) $ 205,554 21,105

Year ended December 31, 2018

Class A $ 180,789 17,914 $ 13,660 1,411 $ (81,095 ) (8,460 ) $ 113,354 10,865
Class C 13,696 1,352 926 95 (7,677 ) (791 ) 6,945 656
Class T — — — — — — — —
Class F-1 19,251 1,883 851 86 (28,102 ) (2,755 ) (8,000 ) (786 )
Class F-2 217,146 21,532 10,686 1,108 (109,497 ) (11,544 ) 118,335 11,096
Class F-3 38,567 3,860 2,378 247 (11,966 ) (1,250 ) 28,979 2,857
Class 529-A 4,019 399 336 35 (1,781 ) (186 ) 2,574 248
Class 529-C 811 80 49 5 (369 ) (38 ) 491 47
Class 529-E 490 51 32 3 (88 ) (9 ) 434 45
Class 529-T — — 1 — † — — 1 — †
Class 529-F-1 991 103 62 6 (228 ) (24 ) 825 85
Class R-1 31 3 4 1 (29 ) (3 ) 6 1
Class R-2 518 51 33 4 (99 ) (10 ) 452 45
Class R-2E 554 54 23 2 (9 ) (1 ) 568 55
Class R-3 838 82 67 7 (277 ) (30 ) 628 59
Class R-4 727 72 39 4 (177 ) (18 ) 589 58
Class R-5E 116 13 2 — † (1 ) — † 117 13
Class R-5 204 20 23 3 (29 ) (3 ) 198 20
Class R-6 172,634 16,711 7,793 819 (7,356 ) (789 ) 173,071 16,741
Total net increase (decrease) $ 651,382 64,180 $ 36,965 3,836 $ (248,780 ) (25,911 ) $ 439,567 42,105


* Includes exchanges between share classes of the fund.
† Amount less than one thousand.


24 American Funds Emerging Markets Bond Fund

10. Investment transactions



The fund made purchases and sales of investment securities, excluding short-term securities and U.S. government obligations, if any, of $570,698,000 and $418,500,000, respectively, during the year ended December 31, 2019.



American Funds Emerging Markets Bond Fund 25

Financial highlights



Income (loss) from
investment operations1 Dividends, distributions and return of capital
Period ended 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) Distributions
(from capital
gains) Return of
capital Total
dividends,
distributions
and return
of capital Net asset
value,
end
of period Total
return2,3 Net assets,
end of period
(in millions) Ratio of
expenses to
average net
assets before
reimburse-
ments/
waivers4 Ratio of
expenses to
average net
assets after
reimburse-
ments/
waivers3,4 Ratio of
net income
to average
net assets3
Class A:
12/31/2019 $ 9.35 $ .63 $ .62 $ 1.25 $ (.36 ) $ (.03 ) $ (.27 ) $ (.66 ) $ 9.94 13.69 % $ 387 1.03 % 1.00 % 6.44 %
12/31/2018 10.38 .61 (1.04 ) (.43 ) (.58 ) — 5 (.02 ) (.60 ) 9.35 (4.23 ) 285 1.06 1.01 6.23
12/31/2017 9.77 .62 .62 1.24 (.61 ) (.02 ) — (.63 ) 10.38 12.93 203 1.25 1.01 6.00
12/31/20166,7 10.00 .40 (.24 ) .16 (.37 ) — (.02 ) (.39 ) 9.77 1.58 8,9 58 1.00 9,10 .93 9,10 5.74 9,10
Class C:
12/31/2019 9.35 .56 .62 1.18 (.32 ) (.03 ) (.24 ) (.59 ) 9.94 12.82 28 1.79 1.77 5.67
12/31/2018 10.38 .53 (1.04 ) (.51 ) (.50 ) — 5 (.02 ) (.52 ) 9.35 (4.98 ) 18 1.85 1.80 5.43
12/31/2017 9.77 .54 .62 1.16 (.53 ) (.02 ) — (.55 ) 10.38 12.08 13 2.04 1.78 5.19
12/31/20166,11 10.19 .22 (.43 ) (.21 ) (.20 ) — (.01 ) (.21 ) 9.77 (2.09 )8 1 .80 8 .73 8 2.26 8
Class T:
12/31/2019 9.35 .65 .62 1.27 (.37 ) (.03 ) (.28 ) (.68 ) 9.94 13.96 9 — 12 .80 9 .78 9 6.67 9
12/31/2018 10.38 .63 (1.04 ) (.41 ) (.60 ) — 5 (.02 ) (.62 ) 9.35 (4.02 )9 — 12 .86 9 .81 9 6.45 9
12/31/20176,13 10.22 .47 .18 .65 (.47 ) (.02 ) — (.49 ) 10.38 6.45 8,9 — 12 1.04 9,10 .79 9,10 6.20 9,10
Class F-1:
12/31/2019 9.35 .63 .62 1.25 (.36 ) (.03 ) (.27 ) (.66 ) 9.94 13.64 13 1.07 1.04 6.41
12/31/2018 10.38 .60 (1.04 ) (.44 ) (.57 ) — 5 (.02 ) (.59 ) 9.35 (4.29 ) 10 1.13 1.10 5.99
12/31/2017 9.77 .62 .62 1.24 (.61 ) (.02 ) — (.63 ) 10.38 12.87 20 1.35 1.05 5.98
12/31/20166,11 10.19 .25 (.44 ) (.19 ) (.22 ) — (.01 ) (.23 ) 9.77 (1.86 )8 1 .55 8 .46 8 2.54 8
Class F-2:
12/31/2019 9.35 .65 .62 1.27 (.37 ) (.03 ) (.28 ) (.68 ) 9.94 13.94 214 .80 .78 6.67
12/31/2018 10.38 .63 (1.04 ) (.41 ) (.60 ) — 5 (.02 ) (.62 ) 9.35 (4.01 ) 164 .83 .78 6.48
12/31/2017 9.77 .64 .62 1.26 (.63 ) (.02 ) — (.65 ) 10.38 13.14 67 1.04 .79 6.20
12/31/20166,11 10.19 .25 (.43 ) (.18 ) (.23 ) — (.01 ) (.24 ) 9.77 (1.81 )8 8 .58 8 .42 8 2.54 8
Class F-3:
12/31/2019 9.35 .66 .62 1.28 (.38 ) (.03 ) (.28 ) (.69 ) 9.94 14.05 112 .74 .67 6.76
12/31/2018 10.38 .63 (1.04 ) (.41 ) (.60 ) — 5 (.02 ) (.62 ) 9.35 (4.00 ) 47 .82 .75 6.53
12/31/20176,14 9.91 .60 .48 1.08 (.59 ) (.02 ) — (.61 ) 10.38 11.13 8 23 1.08 10 .80 10 6.19 10
Class 529-A:
12/31/2019 9.35 .63 .62 1.25 (.36 ) (.03 ) (.27 ) (.66 ) 9.94 13.63 8 1.08 1.05 6.39
12/31/2018 10.38 .60 (1.04 ) (.44 ) (.57 ) — 5 (.02 ) (.59 ) 9.35 (4.28 ) 6 1.11 1.06 6.19
12/31/2017 9.77 .61 .62 1.23 (.60 ) (.02 ) — (.62 ) 10.38 12.79 4 1.39 1.15 5.87
12/31/20166,11 10.19 .25 (.44 ) (.19 ) (.22 ) — (.01 ) (.23 ) 9.77 (1.88 )8 1 .56 8 .49 8 2.52 8


26 American Funds Emerging Markets Bond Fund

Income (loss) from
investment operations1 Dividends, distributions and return of capital
Period ended 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) Distributions
(from capital
gains) Return of
capital Total
dividends,
distributions
and return
of capital Net asset
value,
end
of period Total
return2,3 Net assets,
end of period
(in millions) Ratio of
expenses to
average net
assets before
reimburse-
ments/
waivers4 Ratio of
expenses to
average net
assets after
reimburse-
ments/
waivers3,4 Ratio of
net income
to average
net assets3
Class 529-C:
12/31/2019 $ 9.35 $ .55 $ .62 $ 1.17 $ (.31 ) $ (.03 ) $ (.24 ) $ (.58 ) $ 9.94 12.79 % $ 1 1.82 % 1.80 % 5.65 %
12/31/2018 10.38 .53 (1.04 ) (.51 ) (.50 ) — 5 (.02 ) (.52 ) 9.35 (5.01 ) 1 1.87 1.82 5.42
12/31/2017 9.77 .54 .62 1.16 (.53 ) (.02 ) — (.55 ) 10.38 12.06 9 1 2.03 9 1.80 9 5.21 9
12/31/20166,11 10.19 .23 (.43 ) (.20 ) (.21 ) — (.01 ) (.22 ) 9.77 (1.99 )8,9 — 12 .72 8,9 .64 8,9 2.31 8,9
Class 529-E:
12/31/2019 9.35 .60 .62 1.22 (.34 ) (.03 ) (.26 ) (.63 ) 9.94 13.40 1 1.28 1.26 6.18
12/31/2018 10.38 .58 (1.04 ) (.46 ) (.55 ) — 5 (.02 ) (.57 ) 9.35 (4.49 ) 1 1.33 1.26 6.12
12/31/2017 9.77 .60 .62 1.22 (.59 ) (.02 ) — (.61 ) 10.38 12.71 — 12 1.47 1.24 5.76
12/31/20166,11 10.19 .24 (.43 ) (.19 ) (.22 ) — (.01 ) (.23 ) 9.77 (1.89 )8,9 — 12 .55 8,9 .49 8,9 2.40 8,9
Class 529-T:
12/31/2019 9.35 .65 .62 1.27 (.37 ) (.03 ) (.28 ) (.68 ) 9.94 13.87 9 — 12 .85 9 .83 9 6.61 9
12/31/2018 10.38 .62 (1.04 ) (.42 ) (.59 ) — 5 (.02 ) (.61 ) 9.35 (4.08 )9 — 12 .92 9 .87 9 6.36 9
12/31/20176,13 10.22 .47 .18 .65 (.47 ) (.02 ) — (.49 ) 10.38 6.40 8,9 — 12 1.10 9,10 .85 9,10 6.14 9,10
Class 529-F-1:
12/31/2019 9.35 .65 .62 1.27 (.37 ) (.03 ) (.28 ) (.68 ) 9.94 13.88 4 .84 .82 6.60
12/31/2018 10.38 .62 (1.04 ) (.42 ) (.59 ) — 5 (.02 ) (.61 ) 9.35 (4.08 ) 1 .90 .84 6.51
12/31/2017 9.77 .63 .63 1.26 (.63 ) (.02 ) — (.65 ) 10.38 13.12 1 1.08 .85 6.11
12/31/20166,11 10.19 .25 (.43 ) (.18 ) (.23 ) — (.01 ) (.24 ) 9.77 (1.78 )8 — 12 .47 8 .37 8 2.55 8
Class R-1:
12/31/2019 9.35 .58 .62 1.20 (.33 ) (.03 ) (.25 ) (.61 ) 9.94 13.11 9 — 12 1.56 9 1.52 9 5.94 9
12/31/2018 10.38 .56 (1.04 ) (.48 ) (.53 ) — 5 (.02 ) (.55 ) 9.35 (4.76 )9 — 12 1.64 9 1.57 9 5.63 9
12/31/2017 9.77 .57 .62 1.19 (.56 ) (.02 ) — (.58 ) 10.38 12.37 9 — 12 1.73 9 1.52 9 5.51 9
12/31/20166,11 10.19 .25 (.43 ) (.18 ) (.23 ) — (.01 ) (.24 ) 9.77 (1.77 )8,9 — 12 .40 8,9 .36 8,9 2.49 8,9
Class R-2:
12/31/2019 9.35 .56 .62 1.18 (.32 ) (.03 ) (.24 ) (.59 ) 9.94 12.90 1 1.73 1.70 5.74
12/31/2018 10.38 .55 (1.04 ) (.49 ) (.52 ) — 5 (.02 ) (.54 ) 9.35 (4.84 ) 1 1.70 1.64 5.67
12/31/2017 9.77 .57 .62 1.19 (.56 ) (.02 ) — (.58 ) 10.38 12.39 9 — 12 1.71 9 1.50 9 5.52 9
12/31/20166,11 10.19 .23 (.43 ) (.20 ) (.21 ) — (.01 ) (.22 ) 9.77 (1.99 )8,9 — 12 .68 8,9 .62 8,9 2.34 8,9
Class R-2E:
12/31/2019 9.35 .58 .62 1.20 (.33 ) (.03 ) (.25 ) (.61 ) 9.94 13.20 1 1.46 1.43 6.02
12/31/2018 10.38 .58 (1.04 ) (.46 ) (.55 ) — 5 (.02 ) (.57 ) 9.35 (4.51 ) 1 1.48 1.42 5.89
12/31/2017 9.77 .65 .62 1.27 (.64 ) (.02 ) — (.66 ) 10.38 13.29 9 — 12 1.01 9 .70 9 6.33 9
12/31/20166,11 10.19 .25 (.43 ) (.18 ) (.23 ) — (.01 ) (.24 ) 9.77 (1.77 )8,9 — 12 .39 8,9 .35 8,9 2.46 8,9


See end of table for footnotes.



American Funds Emerging Markets Bond Fund 27

Financial highlights (continued)



Income (loss) from
investment operations1 Dividends, distributions and return of capital
Period ended 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) Distributions
(from capital
gains) Return of
capital Total
dividends,
distributions
and return
of capital Net asset
value,
end
of period Total
return2,3 Net assets,
end of period
(in millions) Ratio of
expenses to
average net
assets before
reimburse-
ments/
waivers4 Ratio of
expenses to
average net
assets after
reimburse-
ments/
waivers3,4 Ratio of
net income
to average
net assets3
Class R-3:
12/31/2019 $ 9.35 $ .60 $ .62 $ 1.22 $ (.34 ) $ (.03 ) $ (.26 ) $ (.63 ) $ 9.94 13.37 % $ 2 1.30 % 1.28 % 6.15 %
12/31/2018 10.38 .58 (1.04 ) (.46 ) (.55 ) — 5 (.02 ) (.57 ) 9.35 (4.52 ) 1 1.36 1.31 5.91
12/31/2017 9.77 .59 .63 1.22 (.59 ) (.02 ) — (.61 ) 10.38 12.70 1 1.52 1.27 5.73
12/31/20166,11 10.19 .25 (.43 ) (.18 ) (.23 ) — (.01 ) (.24 ) 9.77 (1.81 )8,9 — 12 .46 8,9 .41 8,9 2.47 8,9
Class R-4:
12/31/2019 9.35 .63 .62 1.25 (.36 ) (.03 ) (.27 ) (.66 ) 9.94 13.67 1 1.04 1.02 6.44
12/31/2018 10.38 .61 (1.04 ) (.43 ) (.58 ) — 5 (.02 ) (.60 ) 9.35 (4.26 ) 1 1.09 1.03 6.24
12/31/2017 9.77 .63 .62 1.25 (.62 ) (.02 ) — (.64 ) 10.38 13.03 — 12 1.22 .96 6.03
12/31/20166,11 10.19 .25 (.43 ) (.18 ) (.23 ) — (.01 ) (.24 ) 9.77 (1.76 )8,9 — 12 .39 8,9 .35 8,9 2.46 8,9
Class R-5E:
12/31/2019 9.35 .65 .62 1.27 (.37 ) (.03 ) (.28 ) (.68 ) 9.94 14.05 — 12 .77 .75 6.81
12/31/2018 10.38 .63 (1.04 ) (.41 ) (.60 ) — 5 (.02 ) (.62 ) 9.35 (4.03 ) — 12 .86 .76 6.90
12/31/2017 9.77 .65 .62 1.27 (.64 ) (.02 ) — (.66 ) 10.38 13.29 — 12 .99 .69 6.33
12/31/20166,11 10.19 .25 (.43 ) (.18 ) (.23 ) — (.01 ) (.24 ) 9.77 (1.76 )8 — 12 .39 8 .35 8 2.46 8
Class R-5:
12/31/2019 9.35 .66 .62 1.28 (.38 ) (.03 ) (.28 ) (.69 ) 9.94 14.01 1 .74 .71 6.73
12/31/2018 10.38 .63 (1.04 ) (.41 ) (.60 ) — 5 (.02 ) (.62 ) 9.35 (3.98 ) — 12 .80 .74 6.54
12/31/2017 9.77 .65 .62 1.27 (.64 ) (.02 ) — (.66 ) 10.38 13.23 — 12 1.00 .74 6.27
12/31/20166,11 10.19 .25 (.43 ) (.18 ) (.23 ) — (.01 ) (.24 ) 9.77 (1.76 )8 — 12 .38 8 .34 8 2.47 8
Class R-6:
12/31/2019 9.35 .66 .62 1.28 (.38 ) (.03 ) (.28 ) (.69 ) 9.94 14.07 173 .68 .66 6.80
12/31/2018 10.38 .64 (1.04 ) (.40 ) (.61 ) — 5 (.02 ) (.63 ) 9.35 (3.95 ) 157 .72 .66 6.69
12/31/2017 9.77 .64 .62 1.26 (.63 ) (.02 ) — (.65 ) 10.38 13.17 — 12 1.00 .79 6.20
12/31/20166,11 10.19 .25 (.43 ) (.18 ) (.23 ) — (.01 ) (.24 ) 9.77 (1.78 )8 — 12 .41 8 .37 8 2.48 8


Year ended December 31, For the period,
2019 2018 2017 4/22/2016 to 12/31/20166,7,8
Portfolio turnover rate for all share classes15 54 % 38 % 35 % 43 %


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 and/or the fund’s transfer agent. During the periods shown, CRMC reimbursed a portion of other fees and expenses. In addition, during some of the years shown, the fund’s transfer agent waived a portion of the fund’s transfer agent services fees for Class F-3 shares.
4 Ratios do not include expenses of any Central Funds. The fund indirectly bears its proportionate share of the expenses of any Central Funds.
5 Amount less than $.01.
6 Based on operations for a period that is less than a full year.
7 For the period April 22, 2016, commencement of operations, through December 31, 2016.
8 Not annualized.
9 All or a significant portion of assets in this class consisted of seed capital invested by CRMC and/or its affiliates. Fees for distribution services are not charged or accrued on these seed capital assets. If such fees were paid by the fund on seed capital assets, fund expenses would have been higher and net income and total return would have been lower.
10 Annualized.
11 This share class began investment operations on July 29, 2016.
12 Amount less than $1 million.
13 Class T and 529-T shares began investment operations on April 7, 2017.
14 Class F-3 shares began investment operations on January 27, 2017.
15 Rates do not include the fund’s portfolio activity with respect to any Central Funds.


See notes to financial statements.



28 American Funds Emerging Markets Bond Fund


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and Board of Trustees of American Funds Emerging Markets Bond Fund:



Opinion on the Financial Statements and Financial Highlights

We have audited the accompanying statement of assets and liabilities of American Funds Emerging Markets Bond Fund (the “Fund”), including the investment portfolio and the summary investment portfolio, as of December 31, 2019, 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 three years in the period then ended and for the period April 22, 2016 (commencement of operations) to December 31, 2016, and the related notes. In our opinion, the financial statements and financial highlights present fairly, in all material respects, the financial position of the Fund as of December 31, 2019, and 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 three years in the period then ended and for the period April 22, 2016 (commencement of operations) to December 31, 2016, in conformity with accounting principles generally accepted in the United States of America.

Basis for Opinion

The financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on the Fund’s financial statements and financial highlights based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Fund in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.



We conducted our audits in accordance with the standards of the PCAOB. 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, whether due to error or fraud. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting 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.



Our audits included performing procedures to assess the risks of material misstatement of the financial statements and financial highlights, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements and financial highlights. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements and financial highlights. Our procedures included confirmation of securities owned as of December 31, 2019, by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.









Costa Mesa, California

February 12, 2020

We have served as the auditor of one or more American Funds investment companies since 1956.









American Funds Emerging Markets Bond Fund





Part C

Other Information





Item 28. Exhibits for Registration Statement (1940 Act No. 811-23122 and 1933 Act No. 333-208636)


(a) Articles of Incorporation – Certificate of Trust effective 11/4/15 – previously filed (see Pre-Effective Amendment No. 1 filed 3/17/16); and Amended and Restated Agreement and Declaration of Trust dated 9/13/17 – previously filed (see P/E Amendment No. 8 filed 2/28/18)


(b) By-laws – Amended and Restated By-laws effective 8/29/18 – previously filed (see P/E Amendment No. 10 filed 2/28/19)


(c) Instruments Defining Rights of Security Holders – None


(d) Investment Advisory Contracts – Investment Advisory and Service Agreement dated 5/1/19


(e) Underwriting Contracts – Amended and Restated Principal Underwriting Agreement effective 4/7/17 – previously filed (see P/E Amendment No. 8 filed 2/28/18); Form of Selling Group Agreement – previously filed (see P/E Amendment No. 8 filed 2/28/18); Form of Bank/Trust Company Selling Group Agreement – previously filed (see P/E Amendment No. 8 filed 2/28/18); Form of Class F Share Participation Agreement – previously filed (see P/E Amendment No. 8 filed 2/28/18); and Form of Bank/Trust Company Participation Agreement for Class F Shares – previously filed (see P/E Amendment No. 8 filed 2/28/18)


(f) Bonus or Profit Sharing Contracts – Deferred Compensation Plan effective 1/1/20


(g) Custodian Agreements – Global Custody Agreement – previously filed (see Pre-Effective Amendment No. 1 filed 3/17/16)


(h) Other Material Contracts – Indemnification Agreements – previously filed (see Pre-Effective Amendment No. 1 filed 3/17/16); Amended and Restated Shareholder Services Agreement effective 4/7/17 – previously filed (see P/E Amendment No. 10 filed 2/28/19); and Amended and Restated Administrative Services Agreement effective 1/1/18 – previously filed (see P/E Amendment No. 10 filed 2/28/19)


(i) Legal Opinion – Legal Opinion – previously filed (see Pre-Effective Amendment No. 2 filed 4/21/16; P/E Amendment No. 2 filed 12/29/16; and P/E Amendment No. 6 filed 4/6/17)


(j) Other Opinions – Consent of Independent Registered Public Accounting Firm


(k) Omitted financial statements – None





(l) Initial capital agreements – Initial capital agreement – previously filed (see Pre-Effective Amendment No. 1 filed 3/17/16)


(m) Rule 12b-1 Plan – Plans of Distribution dated 3/18/16 – previously filed (see Pre-Effective Amendment No. 1 filed 3/17/16); and Plans of Distribution for Class T Shares and Class 529-T Shares dated 4/7/17 – previously filed (see P/E Amendment No. 8 filed 2/28/18)


(n) Rule 18f-3 Plan – Amended and Restated Multiple Class Plan effective 1/1/18 – previously filed (see P/E Amendment No. 10 filed 2/28/19)


(o) Reserved



(p) Code of Ethics – Code of Ethics for The Capital Group Companies dated December 2019; 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 Adviser/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 Emerging Markets Bond Fund, American Funds Fundamental Investors, American Funds Global Balanced Fund, American Funds Global Insight
Fund, The American Funds Income Series, American Funds Inflation Linked Bond Fund, American Funds International Vantage Fund, American Funds Mortgage Fund, American Funds Portfolio Series, American Funds Retirement Income Portfolio Series, American Funds Short-Term Tax-Exempt Bond Fund, American Funds Strategic Bond Fund, American Funds Target Date Retirement Series, American Funds Tax-Exempt Fund of New York, The American Funds Tax-Exempt Series II, American Funds U.S. Government Money Market Fund, 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 Group U.S. Equity Fund, 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
C. Thomas Akin II



Regional Vice President None
LAO
Christopher S. Anast







Senior Vice President, Capital Group Institutional Investment Services Division None




LAO
William C. Anderson





Director, Senior Vice President and Chief Compliance Officer None
LAO
Dion T. Angelopoulos



Assistant Vice President None
LAO
Luis F. Arocha



Regional Vice President None
LAO
Keith D. Ashley



Regional Vice President None
LAO
Curtis A. Baker







Senior Vice President, Capital Group Institutional Investment Services Division None
LAO
T. Patrick Bardsley



Vice President None
SNO
Mark C. Barile



Assistant Vice President None
LAO
Shakeel A. Barkat



Senior Vice President None
LAO
Antonio M. Bass



Regional Vice President None
LAO
Brett A. Beach



Assistant Vice President None
LAO
Katherine A. Beattie



Senior Vice President None
LAO
Scott G. Beckerman



Vice President None
LAO
Bethann Beiermeister



Regional Vice President None
LAO
Jeb M. Bent



Vice President None
LAO
Matthew D. Benton



Regional Vice President None
LAO
Jerry R. Berg



Vice President None
LAO
Joseph W. Best, Jr.







Senior Vice President, Capital Group Institutional Investment Services Division None
LAO
Roger J. Bianco, Jr.



Senior Vice President None
LAO
Ryan M. Bickle







Senior Vice President, Capital Group Institutional Investment Services Division None
LAO
Peter D. Bjork



Regional Vice President None




LAO
Marek Blaskovic



Vice President None
LAO
Matthew C. Bloemer



Regional Vice President None
LAO
Jeffrey E. Blum



Regional Vice President None
LAO
Gerard M. Bockstie, Jr.



Senior Vice President None
LAO
Jon T. Boldt



Regional Vice President None
LAO
Jill M. Boudreau







Senior Vice President, Capital Group Institutional Investment Services Division None
LAO
Andre W. Bouvier







Senior Vice President, Capital Group Institutional Investment Services Division None
LAO
Michael A. Bowman







Senior Vice President, Capital Group Institutional Investment Services Division None
LAO
Jordan C. Bowers



Regional Vice President None
LAO
David H. Bradin



Vice President None
LAO
William P. Brady



Senior Vice President None
LAO
William G. Bridge



Vice President None
IND
Robert W. Brinkman



Assistant Vice President None
LAO
Jeffrey R. Brooks



Vice President None
LAO
Kevin G. Broulette



Vice President, Capital Group Institutional Investment Services Division



None
LAO
E. Chapman Brown, Jr.



Vice President None
LAO
Toni L. Brown







Senior Vice President, Capital Group Institutional Investment Services Division None
LAO Elizabeth S. Brownlow
Assistant Vice President



None




IND
Jennifer A. Bruce



Assistant Vice President None
LAO
Gary D. Bryce



Vice President None
LAO
Ronan J. Burke







Senior Vice President, Capital Group Institutional Investment Services Division None
LAO
Steven Calabria



Senior Vice President None
LAO
Thomas E. Callahan



Senior Vice President None
LAO
Matthew S. Cameron



Regional Vice President None
LAO
Anthony J. Camilleri



Vice President None
LAO
Kelly V. Campbell



Senior Vice President None
LAO
Anthon S. Cannon III



Vice President None
LAO
Kevin J. Carevic



Regional Vice President None
LAO
Jason S. Carlough



Vice President None
LAO
Kim R. Carney



Senior Vice President None
LAO
Damian F. Carroll



Senior Vice President None
LAO
James D. Carter



Senior Vice President None
LAO
Stephen L. Caruthers



Senior Vice President, Capital Group Institutional Investment Services Division



None
SFO
James G. Carville



Senior Vice President, Capital Group Institutional Investment Services Division



None
LAO
Philip L. Casciano



Regional Vice President None
LAO
Brian C. Casey



Senior Vice President None
LAO
Christopher M. Cefalo



Vice President



None
LAO
Joseph M. Cella



Regional Vice President None




LAO
Kent W. Chan



Senior Vice President, Capital Group Institutional Investment Services Division



None
LAO
Thomas M. Charon



Senior Vice President None
LAO Ibrahim Chaudry
Vice President, Capital Group Institutional Investment Services Division



None
SNO Marcus L. Chaves
Assistant Vice President



None
LAO
Daniel A. Chodosch



Vice President None
LAO
Wellington Choi







Senior Vice President, Capital Group Institutional Investment Services Division None
LAO
Andrew T. Christos



Regional Vice President None
LAO
Paul A. Cieslik



Senior Vice President None
IND
G. Michael Cisternino



Vice President None
LAO
Andrew R. Claeson



Vice President None
LAO
Michael J. Clark



Regional Vice President None
IND
David A. Clase



Vice President None
LAO
Jamie A. Claypool



Regional Vice President None
LAO
Kyle R. Coffey



Regional Vice President None
IND
Timothy J. Colvin



Regional Vice President None
SNO
Brandon J Cone



Assistant 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
Greggory J. Cowan



Regional Vice President None




LAO
Joseph G. Cronin



Senior Vice President None
IND
Jill R. Cross



Vice President None
LAO
D. Erick Crowdus



Vice President None
SNO Zachary A. Cutkomp
Assistant Vice President



None
LAO
Hanh M. Dao



Vice President None
LAO
Alex L. DaPron



Regional Vice President None
LAO
William F. Daugherty



Senior Vice President None
SNO
Bradley C. Davis



Assistant Vice President None
LAO
Scott T. Davis



Vice President None
LAO
Shane L. Davis



Vice President None
LAO
Peter J. Deavan



Senior Vice President None
LAO
Kristofer J. DeBonville



Regional Vice President None
LAO
Guy E. Decker



Senior Vice President None
LAO
Daniel Delianedis



Senior Vice President None
LAO
Mark A. Dence



Senior Vice President None
SNO
Brian M. Derrico



Vice President None
LAO
Stephen Deschenes



Senior Vice President None
LAO
Alexander J. Diorio



Regional Vice President 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



Senior Vice President None




LAO
John H. Donovan IV



Vice President None
LAO
Ronald Q. Dottin



Vice President
LAO
John J. Doyle







Senior Vice President, Capital Group Institutional Investment Services Division None
LAO
Ryan T. Doyle



Vice President None
SNO
Melissa A. Dreyer



Assistant Vice President None
LAO
Craig Duglin



Senior Vice President None
LAO
Alan J. Dumas



Regional Vice President None
SNO
Bryan K. Dunham



Vice President None
LAO
Sean P. Durkin



Regional Vice President None
LAO
John E. Dwyer IV







Senior Vice President, Capital Group Institutional Investment Services Division None
IND
Karyn B. Dzurisin



Vice President None
LAO
Kevin C. Easley



Senior Vice President None
LAO
Damian Eckstein



Vice President None
LAO
Matthew J. Eisenhardt



Senior Vice President None
LAO
Timothy L. Ellis



Senior Vice President None
LAO
John A. Erickson



Assistant Vice President None
LAO
Riley O. Etheridge, Jr.



Senior Vice President None
LAO
E. Luke Farrell







Senior Vice President, Capital Group Institutional Investment Services Division None
LAO
Bryan R. Favilla



Regional Vice President None
LAO
Joseph M. Fazio



Regional Vice President None




LAO
Mark A. Ferraro



Vice President None
LAO
Brandon J. Fetta



Assistant Vice President None
LAO
Kevin H. Folks



Vice President None
LAO
David R. Ford



Vice President None
LAO
William E. Ford



Vice President None
LAO
Steven M. Fox



Vice President None
LAO
Daniel Frick



Senior Vice President None
LAO
Tyler L. Furek



Regional Vice President None
SNO
Arturo V. Garcia, Jr.



Vice President None
LAO
J. Gregory Garrett







Senior Vice President, Capital Group Institutional Investment Services Division None
SNO
Edward S. Garza



Regional Vice President None
LAO
Brian K. Geiger



Vice President None
LAO
Leslie B. Geller



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
William F. Gilmartin



Vice President None
LAO
Kathleen D. Golden



Regional Vice President None
SNO
Craig B. Gray



Assistant Vice President None
LAO
Robert E. Greeley, Jr.



Vice President None
LAO
Jameson R. Greenstone



Regional Vice President None




LAO
Jeffrey J. Greiner



Senior Vice President None
LAO
Eric M. Grey



Senior Vice President None
LAO
Karen M. Griffin



Assistant Vice President None
LAO
E. Renee Grimm



Senior Vice President



None
LAO
Scott A. Grouten



Regional Vice President None
SNO
Virginia Guevara



Assistant Vice President None
IRV
Steven Guida



Senior Vice President None
LAO
Sam S. Gumma



Vice President None
LAO
Jan S. Gunderson



Senior Vice President None
SNO
Lori L. Guy



Regional Vice President None
LAO
Ralph E. Haberli



Senior Vice President; Senior Vice President, Capital Group Institutional Investment Services Division



None
LAO
Paul B. Hammond



Senior Vice President None
LAO
Philip E. Haning



Vice President None
LAO
Dale K. Hanks







Vice President, Capital Group Institutional Investment Services Division None
LAO
David R. Hanna



Vice President None
LAO
Brandon S. Hansen



Regional Vice President None
LAO
Julie O. 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



Senior Vice President None
LAO
Alan M. Heaton



Vice President None
LAO
Clifford W. “Webb” Heidinger



Vice President None
LAO
Brock A. Hillman



Vice President, Capital Group Institutional Investment Services Division



None
IND Kristin S. Himsel
Regional Vice President



None
LAO
Jennifer M. Hoang



Vice President None
LAO
Jessica K. Hooyenga



Regional Vice President None
LAO
Heidi B. Horwitz-Marcus



Senior Vice President None
LAO
David R. Hreha



Vice President None
LAO
Frederic J. Huber



Senior Vice President None
LAO
David K. Hummelberg









Director, Executive Vice President, Chief Operating Officer and Chief Financial Officer None
LAO
Jeffrey K. Hunkins



Vice President None
LAO
Angelia G. Hunter



Senior Vice President None
LAO
Christa M. Iacono



Assistant Vice President None
LAO
Marc G. Ialeggio



Senior Vice President None
IND
David K. Jacocks



Vice President None
LAO
Maurice E. Jadah



Regional Vice President None
LAO
W. Chris Jenkins



Senior Vice President None
LAO
Daniel J. Jess II



Vice President None
IND
Jameel S. Jiwani



Regional Vice President None
LAO
Brendan M. Jonland



Vice President None




LAO
Kathryn H. Jordan



Regional Vice President None
LAO
David G. Jordt



Vice President



None
LAO
Stephen T. Joyce







Senior Vice President, Capital Group Institutional Investment Services Division None
LAO
Wassan M. Kasey



Vice President None
LAO
John P. Keating



Senior Vice President None
LAO
David B. Keib



Vice President None
LAO
Brian G. Kelly



Senior Vice President None
LAO
Christopher J. Kennedy



Regional Vice President None
LAO
Jason A. Kerr



Vice President None
LAO
Ryan C. Kidwell



Senior Vice President None
LAO
Nora A. Kilaghbian



Vice President None
IRV
Michael C. Kim



Vice President None
LAO
Charles A. King







Senior Vice President, Capital Group Institutional Investment Services Division None
LAO
Mark Kistler



Senior Vice President None
LAO
Stephen J. Knutson



Assistant Vice President None
LAO
Michael J. Koch



Regional Vice President None
LAO
James M. Kreider



Vice President None
LAO
Andrew M. Kruger



Regional Vice President None
SNO
David D. Kuncho



Vice President None
LAO
Richard M. Lang







Senior Vice President, Capital Group Institutional Investment Services Division None




LAO
Christopher F. Lanzafame



Senior Vice President None
LAO
Andrew P. Laskowski



Regional Vice President None
LAO
Matthew N. Leeper



Vice President None
LAO
Clay M. Leveritt



Vice President None
LAO Lorin E. Liesy
Senior Vice President



None
IND Justin L. Linder
Assistant Vice President



None
LAO
Louis K. Linquata



Senior Vice President None
LAO
Heather M. Lord



Senior Vice President None
LAO
Peter K. Maddox



Regional Vice President None
LAO
James M. Maher



Vice President None
LAO
Brendan T. Mahoney



Senior Vice President None
LAO
Nathan G. Mains



Vice President None
LAO
Jeffrey N. Malbasa



Regional Vice President None
LAO
Usma A. Malik



Assistant Vice President None
LAO
Brooke M. Marrujo



Vice President None
LAO
Kristan N. Martin



Regional Vice President None
LAO
Stephen B. May



Vice President None
LAO
Joseph A. McCreesh, III



Senior Vice President None
LAO
Ross M. McDonald



Senior Vice President None
LAO
Timothy W. McHale



Secretary None
SNO Michael J. McLaughlin
Assistant Vice President



None
LAO
Max J. McQuiston



Vice President None
LAO
Scott M. Meade



Senior Vice President None




LAO
Paulino Medina



Regional Vice President None
LAO
Christopher J. Meek



Regional Vice President None
LAO
Britney L. Melvin



Vice President None
LAO
Simon Mendelson



Senior Vice President None
LAO
David A. Merrill



Assistant Vice President None
LAO
Conrad F. Metzger



Regional Vice President None
LAO
Benjamin J. Miller



Regional Vice President None
LAO
Jennifer M. Miller



Regional Vice President None
LAO Tammy H. Miller
Vice President



None
LAO
William T. Mills



Senior Vice President None
LAO
Sean C. Minor



Senior Vice President None
LAO
Louis W. Minora



Regional Vice President None
LAO
James R. Mitchell III



Senior Vice President None
LAO
Charles L. Mitsakos



Senior Vice President None
LAO
Robert P. Moffett III



Vice President None
IND
Eric E. Momcilovich



Assistant Vice President None
LAO
David H. Morrison



Vice President None
LAO
Andrew J. Moscardini







Senior Vice President, Capital Group Institutional Investment Services Division None
NYO
Timothy J. Murphy



Senior Vice President None
LAO
Christina M. Neal



Assistant Vice President None
LAO
Jon C. Nicolazzo



Vice President None
LAO
Earnest M. Niemi



Senior Vice President None




LAO
William E. Noe



Senior Vice President None
LAO
Matthew P. O’Connor









Director, Chairman and Chief Executive Officer; Senior Vice President, Capital Group Institutional Investment Services Division



None
IND
Jody L. O’Dell



Assistant Vice President None
LAO
Jonathan H. O’Flynn



Senior Vice President None
LAO
Peter A. Olsen



Vice President None
LAO
Jeffrey A. Olson



Vice President None
LAO
Thomas A. O’Neil



Senior Vice President None
IRV
Paula A. Orologas



Vice President None
LAO
Gregory H. Ortman







Vice President, Capital Group Institutional Investment Services Division None
LAO
Shawn M. O’Sullivan



Senior Vice President None
IND
Lance T. Owens



Vice President None
LAO
Kristina E. Page



Vice President None
LAO
Rodney Dean Parker II



Senior Vice President None
LAO
Ingrid S. Parl



Regional Vice President None
LAO
William D. Parsley



Regional Vice President None
LAO
Lynn M. Patrick







Vice President, Capital Group Institutional Investment Services Division None
LAO
Timothy C. Patterson



Vice President None
LAO
W. Burke Patterson, Jr.



Senior Vice President None
LAO
Gary A. Peace



Senior Vice President None




LAO
Robert J. Peche



Vice President None
LAO
David K. Petzke



Senior Vice President None
LAO
Harry A. Phinney



Vice President, Capital Group Institutional Investment Services Division



None
LAO
Adam W. Phillips



Vice President None
LAO
Joseph M. Piccolo



Vice President None
LAO
Keith A. Piken



Senior Vice President None
LAO
Carl S. Platou



Senior Vice President None
LAO
David T. Polak







Senior Vice President, Capital Group Institutional Investment Services Division None
LAO
Michael E. Pollgreen



Assistant Vice President None
LAO
Charles R. Porcher



Senior Vice President None
SNO
Robert B. Potter III



Assistant Vice President None
LAO
Darrell W. Pounders



Regional Vice President None
LAO
Steven J. Quagrello



Senior Vice President None
IND
Kelly S. Quick



Assistant Vice President None
LAO
Michael R. Quinn



Senior Vice President None
LAO
Ryan E. Radtke



Regional Vice President None
LAO
James R. Raker







Senior Vice President, Capital Group Institutional Investment Services Division None
LAO
Sunder R. Ramkumar



Senior Vice President None
LAO
Rachel M. Ramos



Assistant Vice President None
LAO
Rene M. Reincke



Vice President None




LAO
Michael D. Reynaert



Regional Vice President None
IND Richard Rhymaun
Vice President



None
LAO
Christopher J. Richardson



Vice President None
SNO
Stephanie A. Robichaud



Assistant Vice President None
LAO
Jeffrey J. Robinson



Vice President None
LAO
Matthew M. Robinson



Vice President None
LAO Bethany M. Rodenhuis
Senior Vice President



None
LAO
Rochelle C. Rodriguez



Senior Vice President None
LAO
Melissa B. Roe



Senior Vice President None
LAO
Thomas W. Rose







Senior Vice President, Capital Group Institutional Investment Services Division None
SNO
Tracy M. Roth



Assistant Vice President None
LAO
Rome D. Rottura



Senior Vice President None
LAO
Shane A. Russell



Vice President None
LAO
William M. Ryan



Senior Vice President None
IND
Brenda S. Rynski



Regional Vice President None
LAO
Richard A. Sabec, Jr.



Senior Vice President None
SNO
Richard R. Salinas



Vice President None
LAO
Paul V. Santoro



Senior Vice President None
LAO
Keith A. Saunders



Vice President None
LAO
Joe D. Scarpitti



Senior Vice President None
LAO
Michael A. Schweitzer



Senior Vice President None
LAO Domenic A. Sciarra
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
Nathan W. Simmons



Vice President None
LAO
Melissa A. Sloane



Vice President None
LAO
Joshua J. Smith



Regional Vice President None
LAO
Taylor D. Smith



Regional Vice President None
SNO
Stacy D. Smolka



Senior Vice President None
LAO
Stephanie L. Smolka



Regional Vice President None
LAO
J. Eric Snively



Senior Vice President None
LAO
John A. Sobotowski



Assistant Vice President None
LAO
Charles V. Sosa



Regional Vice President None
LAO
Kristen J. Spazafumo



Vice President None
LAO
Margaret V. Steinbach



Vice President None
LAO
Michael P. Stern



Senior Vice President None
LAO
Andrew J. Strandquist



Vice President



None
LAO
Allison M. Straub



Regional Vice President None
LAO
John R. Sulzicki



Regional Vice President None
LAO
Peter D. Thatch



Senior Vice President None
LAO
John B. Thomas



Vice President None
LAO
Cynthia M. Thompson







Senior Vice President, Capital Group Institutional Investment Services Division None




IND
Scott E. Thompson



Assistant Vice President None
HRO
Stephen B. Thompson



Regional Vice President None
LAO
Mark R. Threlfall



Vice President None
LAO
Ryan D. Tiernan



Vice President None
LAO
Emily R. Tillman



Vice President None
LAO
Russell W. Tipper



Senior Vice President None
LAO
Luke N. Trammell



Senior Vice President None
LAO
Jordan A. Trevino



Vice President None
LAO
Michael J. Triessl



Director None
LAO
Shaun C. Tucker



Senior Vice President None
IND
Ryan C. Tyson



Assistant Vice President None
LAO
Jason A. Uberti



Vice President None
LAO
David E. Unanue



Senior Vice President None
LAO
John W. Urbanski



Regional Vice President None
LAO
Idoya Urrutia



Vice President None
LAO
Scott W. Ursin-Smith



Senior Vice President None
LAO
Joe M. Valencia



Regional Vice President None
LAO
Patrick D. Vance



Vice President None
LAO Veronica Vasquez
Assistant Vice President



None
LAO-W Gerrit Veerman III
Senior Vice President, Capital Group Institutional Investment Services



None
LAO
Srinkanth Vemuri



Senior Vice President None
LAO
Spilios Venetsanopoulos



Vice President None




LAO
J. David Viale



Senior Vice President None
LAO
Robert D. Vigneaux III







Senior Vice President, Capital Group Institutional Investment Services Division None
LAO
Jayakumar Vijayanathan



Senior Vice President None
LAO
Julie A. Vogel



Regional Vice President None
LAO
Todd R. Wagner







Senior Vice President, Capital Group Institutional Investment Services Division None
LAO
Jon N. Wainman



Vice President None
LAO
Sherrie S. Walling



Vice President None
LAO
Brian M. Walsh



Senior Vice President None
LAO
Susan O. Walton







Senior Vice President, Capital Group Institutional Investment Services Division 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







Senior Vice President, Capital Group Institutional Investment Services Division None
LAO
Adam B. Whitehead



Vice President None
LAO
N. Dexter Williams



Senior Vice President None
LAO
Jonathan D. Wilson



Regional Vice President None
LAO
Steven Wilson



Senior Vice President None
LAO
Steven C. Wilson



Vice President None




LAO
Kimberly D. Wood







Senior Vice President, Capital Group Institutional Investment Services Division None
LAO
Kurt A. Wuestenberg



Senior Vice President None
LAO
Jonathan A. Young



Senior Vice President None
LAO
Jason P. Young



Senior Vice President None
LAO
Raul Zarco, Jr.







Vice President, Capital Group Institutional Investment Services Division None
IND
Ellen M. Zawacki



Vice President None
LAO Connie R. Zeender
Regional Vice President



None


__________

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., 15th Floor, Los Angeles, CA 90025
NYO Business Address, 630 Fifth Avenue, 36th 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


(c) None





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 held 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, California 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, California 92618; 12811 North Meridian Street, Carmel, Indiana 46032; 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, Bank of New York Mellon.







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 27th day of February, 2019.





AMERICAN FUNDS EMERGING MARKETS BOND FUND



By: /s/ Kristine M. Nishiyama

(Kristine M. Nishiyama, Executive Vice President)





Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed below on February 27, 2019, by the following persons in the capacities indicated.



Signature Title
(1) Principal Executive Officer:
/s/ Kristine M. Nishiyama Executive Vice President
(Kristine M. Nishiyama)

(2) Principal Financial Officer and Principal Accounting Officer:



/s/ Brian C. Janssen



Treasurer

(Brian C. Janssen)

(3) Trustees:
William H. Baribault* Trustee
James G. Ellis* Trustee
Nariman Farvardin* Trustee
Michael C. Gitlin* Trustee
Mary Davis Holt* Trustee
R. Clark Hooper* Trustee
Merit E. Janow* Trustee
Margaret Spellings* Chairman of the Board (Independent and Non-Executive)
Alexandra Trower* Trustee
Paul S. Williams* Trustee
Karl J. Zeile* Trustee



*By: /s/ Steven I. Koszalka


(Steven I. Koszalka, 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/ Clara K. Wee

(Clara K. Wee, 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 Emerging Markets Bond Fund (File No. 333-208636; File No. 811-23122)
- 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 Insurance Series
- American Funds Mortgage Fund (File No. 333-168595, File No. 811-22449)
- American Funds Multi-Sector Income Fund (File No. 333-228995, File No. 811-23409)
- American Funds Portfolio Series (File No. 333-178936, File No. 811-22656)
- American Funds Retirement Income Portfolio Series (File No. 333-203797, File No. 811-23053)
- American Funds Short-Term Tax-Exempt Bond Fund (File No. 033-26431, File No. 811-05750)
- American Funds Strategic Bond Fund (File No. 333-207474, File No. 811-23101)
- 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 Funds U.S. Government Money Market Fund (File No. 333-157162, File No. 811-22277)
- 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 Group Central Fund Series – Capital Group Central Cash Fund (File No. 811-23391)
- 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



Jennifer L. Butler

Steven I. Koszalka

Laurie D. Neat

Michael W. Stockton

Courtney R. Taylor

Jane Y. Chung

Susan K. Countess

Julie E. Lawton

Brian D. Bullard

Brian C. Janssen

Dori Laskin

Hong Le

Gregory F. Niland



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 Los Angeles, CA, this 4th day of March, 2019.

(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 Emerging Markets Bond Fund (File No. 333-208636; File No. 811-23122)
- American Funds Global Balanced Fund (File No. 333-170605, File No. 811-22496)
- American Funds Global Insight Fund (File No. 333-233375, File No. 811-23468)
- 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 Insurance Series
- American Funds International Vantage Fund (File No. 333-233374, File No. 811-23467)
- American Funds Mortgage Fund (File No. 333-168595, File No. 811-22449)
- American Funds Multi-Sector Income Fund (File No. 333-228995, File No. 811-23409)
- American Funds Portfolio Series (File No. 333-178936, File No. 811-22656)
- American Funds Retirement Income Portfolio Series (File No. 333-203797, File No. 811-23053)
- American Funds Short-Term Tax-Exempt Bond Fund (File No. 033-26431, File No. 811-05750)
- American Funds Strategic Bond Fund (File No. 333-207474, File No. 811-23101)
- 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 Funds U.S. Government Money Market Fund (File No. 333-157162, File No. 811-22277)
- 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)
- American Mutual Fund (File No. 002-10607, File No. 811-00572)
- The Bond Fund of America (File No. 002-50700, File No. 811-02444)
- Capital Group Central Fund Series – Capital Group Central Cash Fund (File No. 811-23391)
- Capital Group Emerging Markets Total Opportunities Fund (File No. 333-176635, File No. 811-22605)
- Capital Group Private Client Services Funds (File No. 333-163115, File No. 811-22349)
- Capital Group U.S. Equity Fund (File No. 333-233376, File No. 811-23469)
- Capital World Bond Fund (File No. 033-12447, File No. 811-05104)
- Emerging Markets Growth Fund, Inc. (File No. 333-74995, File No. 811-04692)
- Intermediate Bond Fund of America (File No. 033-19514, File No. 811-05446)
- The Investment Company of America (File No. 002-10811, File No. 811-00116)
- 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



Jennifer L. Butler

Steven I. Koszalka

Michael W. Stockton

Courtney R. Taylor

Jane Y. Chung

Susan K. Countess

Julie E. Lawton

Brian D. Bullard

Sandra Chuon

Brian C. Janssen

Hong Le

Gregory F. Niland



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 Los Angeles, CA, this 8th day of November, 2019.

(City, State)



/s/ James G. Ellis

James G. Ellis, Board member



POWER OF ATTORNEY



I, Nariman Farvardin, the undersigned Board member of the following registered investment companies (collectively, the “Funds”):



- 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 Emerging Markets Bond Fund (File No. 333-208636; File No. 811-23122)
- 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 Insurance Series
- American Funds Mortgage Fund (File No. 333-168595, File No. 811-22449)
- American Funds Multi-Sector Income Fund (File No. 333-228995, File No. 811-23409)
- American Funds Portfolio Series (File No. 333-178936, File No. 811-22656)
- American Funds Retirement Income Portfolio Series (File No. 333-203797, File No. 811-23053)
- American Funds Short-Term Tax-Exempt Bond Fund (File No. 033-26431, File No. 811-05750)
- American Funds Strategic Bond Fund (File No. 333-207474, File No. 811-23101)
- 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 Funds U.S. Government Money Market Fund (File No. 333-157162, File No. 811-22277)
- 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 Group Central Fund Series – Capital Group Central Cash Fund (File No. 811-23391)
- Capital World Bond Fund (File No. 033-12447, File No. 811-05104)
- Intermediate Bond Fund of America (File No. 033-19514, File No. 811-05446)
- 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)
- Washington Mutual Investors Fund (File No. 002-11051, File No. 811-00604)


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



Jennifer L. Butler

Steven I. Koszalka

Laurie D. Neat

Michael W. Stockton

Courtney R. Taylor

Jane Y. Chung

Susan K. Countess

Julie E. Lawton

Brian D. Bullard

Brian C. Janssen

Dori Laskin

Hong Le

Gregory F. Niland



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 Los Angeles, CA, this 4th day of March, 2019.

(City, State)





/s/ Nariman Farvardin

Nariman Farvardin, Board member



POWER OF ATTORNEY



I, Michael C. Gitlin, the undersigned Board member of the following registered investment companies (collectively, the “Funds”):



- 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 Emerging Markets Bond Fund (File No. 333-208636; File No. 811-23122)
- 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 Insurance Series
- American Funds Mortgage Fund (File No. 333-168595, File No. 811-22449)
- American Funds Multi-Sector Income Fund (File No. 333-228995, File No. 811-23409)
- American Funds Portfolio Series (File No. 333-178936, File No. 811-22656)
- American Funds Retirement Income Portfolio Series (File No. 333-203797, File No. 811-23053)
- American Funds Short-Term Tax-Exempt Bond Fund (File No. 033-26431, File No. 811-05750)
- American Funds Strategic Bond Fund (File No. 333-207474, File No. 811-23101)
- 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 Funds U.S. Government Money Market Fund (File No. 333-157162, File No. 811-22277)
- 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 Group Central Fund Series – Capital Group Central Cash Fund (File No. 811-23391)
- Capital World Bond Fund (File No. 033-12447, File No. 811-05104)
- Intermediate Bond Fund of America (File No. 033-19514, File No. 811-05446)
- 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



Jennifer L. Butler

Steven I. Koszalka

Laurie D. Neat

Michael W. Stockton

Courtney R. Taylor

Jane Y. Chung

Susan K. Countess

Julie E. Lawton

Brian D. Bullard

Brian C. Janssen

Dori Laskin

Hong Le

Gregory F. Niland



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 Los Angeles, CA, this 4th day of March, 2019.

(City, State)





/s/ Michael C. Gitlin

Michael C. Gitlin, Board member



POWER OF ATTORNEY



I, Mary Davis Holt, the undersigned Board member of the following registered investment companies (collectively, the “Funds”):



- 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 Emerging Markets Bond Fund (File No. 333-208636; File No. 811-23122)
- 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 Insurance Series
- American Funds Mortgage Fund (File No. 333-168595, File No. 811-22449)
- American Funds Multi-Sector Income Fund (File No. 333-228995, File No. 811-23409)
- American Funds Portfolio Series (File No. 333-178936, File No. 811-22656)
- American Funds Retirement Income Portfolio Series (File No. 333-203797, File No. 811-23053)
- American Funds Short-Term Tax-Exempt Bond Fund (File No. 033-26431, File No. 811-05750)
- American Funds Strategic Bond Fund (File No. 333-207474, File No. 811-23101)
- 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 Funds U.S. Government Money Market Fund (File No. 333-157162, File No. 811-22277)
- 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 Group Central Fund Series – Capital Group Central Cash Fund (File No. 811-23391)
- Capital World Bond Fund (File No. 033-12447, File No. 811-05104)
- Intermediate Bond Fund of America (File No. 033-19514, File No. 811-05446)
- 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)
- Washington Mutual Investors Fund (File No. 002-11051, File No. 811-00604)


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



Jennifer L. Butler

Steven I. Koszalka

Laurie D. Neat

Michael W. Stockton

Courtney R. Taylor

Jane Y. Chung

Susan K. Countess

Julie E. Lawton

Brian D. Bullard

Brian C. Janssen

Dori Laskin

Hong Le

Gregory F. Niland



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 Los Angeles, CA, this 4th day of March, 2019.

(City, State)





/s/ Mary Davis Holt

Mary Davis Holt, Board member



POWER OF ATTORNEY



I, R. Clark Hooper, the undersigned Board member of the following registered investment companies (collectively, the “Funds”):



- 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 Emerging Markets Bond Fund (File No. 333-208636; File No. 811-23122)
- 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 Insurance Series
- American Funds Mortgage Fund (File No. 333-168595, File No. 811-22449)
- American Funds Multi-Sector Income Fund (File No. 333-228995, File No. 811-23409)
- American Funds Portfolio Series (File No. 333-178936, File No. 811-22656)
- American Funds Retirement Income Portfolio Series (File No. 333-203797, File No. 811-23053)
- American Funds Short-Term Tax-Exempt Bond Fund (File No. 033-26431, File No. 811-05750)
- American Funds Strategic Bond Fund (File No. 333-207474, File No. 811-23101)
- 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 Funds U.S. Government Money Market Fund (File No. 333-157162, File No. 811-22277)
- 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 Group Central Fund Series – Capital Group Central Cash Fund (File No. 811-23391)
- Capital Income Builder (File No. 033-12967, File No. 811-05085)
- Capital World Bond Fund (File No. 033-12447, File No. 811-05104)
- Capital World Growth and Income Fund (File No. 033-54444, File No. 811-07338)
- Intermediate Bond Fund of America (File No. 033-19514, File No. 811-05446)
- Limited Term Tax-Exempt Bond Fund of America (File No. 033-66214, File No. 811-07888)
- The New Economy Fund (File No. 002-83848, File No. 811-03735)
- 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)
- Washington Mutual Investors Fund (File No. 002-11051, File No. 811-00604)


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



Jennifer L. Butler

Steven I. Koszalka

Laurie D. Neat

Michael W. Stockton

Courtney R. Taylor

Jane Y. Chung

Susan K. Countess

Julie E. Lawton

Brian D. Bullard

Brian C. Janssen

Dori Laskin

Hong Le

Gregory F. Niland



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 Los Angeles, CA, this 4th day of March, 2019.

(City, State)





/s/ R. Clark Hooper

R. Clark Hooper, Board member



POWER OF ATTORNEY



I, Merit E. Janow, the undersigned Board member of the following registered investment companies (collectively, the “Funds”):



- 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 Emerging Markets Bond Fund (File No. 333-208636; File No. 811-23122)
- 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 Insurance Series
- American Funds Mortgage Fund (File No. 333-168595, File No. 811-22449)
- American Funds Multi-Sector Income Fund (File No. 333-228995, File No. 811-23409)
- American Funds Portfolio Series (File No. 333-178936, File No. 811-22656)
- American Funds Retirement Income Portfolio Series (File No. 333-203797, File No. 811-23053)
- American Funds Short-Term Tax-Exempt Bond Fund (File No. 033-26431, File No. 811-05750)
- American Funds Strategic Bond Fund (File No. 333-207474, File No. 811-23101)
- 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 Funds U.S. Government Money Market Fund (File No. 333-157162, File No. 811-22277)
- 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 Group Central Fund Series – Capital Group Central Cash Fund (File No. 811-23391)
- Capital Income Builder (File No. 033-12967, File No. 811-05085)
- Capital World Bond Fund (File No. 033-12447, File No. 811-05104)
- Capital World Growth and Income Fund (File No. 033-54444, File No. 811-07338)
- Intermediate Bond Fund of America (File No. 033-19514, File No. 811-05446)
- Limited Term Tax-Exempt Bond Fund of America (File No. 033-66214, File No. 811-07888)
- The New Economy Fund (File No. 002-83848, File No. 811-03735)
- 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



Jennifer L. Butler

Steven I. Koszalka

Laurie D. Neat

Michael W. Stockton

Courtney R. Taylor

Jane Y. Chung

Susan K. Countess

Julie E. Lawton

Brian D. Bullard

Brian C. Janssen

Dori Laskin

Hong Le

Gregory F. Niland



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 Los Angeles, CA, this 4th day of March, 2019.

(City, State)





/s/ Merit E. Janow

Merit E. Janow, Board member



POWER OF ATTORNEY



I, Margaret Spellings, 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 Emerging Markets Bond Fund (File No. 333-208636; File No. 811-23122)
- 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 Insurance Series
- American Funds Mortgage Fund (File No. 333-168595, File No. 811-22449)
- American Funds Multi-Sector Income Fund (File No. 333-228995, File No. 811-23409)
- American Funds Portfolio Series (File No. 333-178936, File No. 811-22656)
- American Funds Retirement Income Portfolio Series (File No. 333-203797, File No. 811-23053)
- American Funds Short-Term Tax-Exempt Bond Fund (File No. 033-26431, File No. 811-05750)
- American Funds Strategic Bond Fund (File No. 333-207474, File No. 811-23101)
- 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 Funds U.S. Government Money Market Fund (File No. 333-157162, File No. 811-22277)
- 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 Group Central Fund Series – Capital Group Central Cash Fund (File No. 811-23391)
- 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)
- Washington Mutual Investors Fund (File No. 002-11051, File No. 811-00604)


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



Jennifer L. Butler

Steven I. Koszalka

Laurie D. Neat

Michael W. Stockton

Courtney R. Taylor

Jane Y. Chung

Susan K. Countess

Julie E. Lawton

Brian D. Bullard

Brian C. Janssen

Dori Laskin

Hong Le

Gregory F. Niland



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 Los Angeles, CA, this 4th day of March, 2019.

(City, State)



/s/ Margaret Spellings

Margaret Spellings, Board member



POWER OF ATTORNEY



I, Alexandra Trower, the undersigned Board member of the following registered investment companies (collectively, the “Funds”):



- 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 Emerging Markets Bond Fund (File No. 333-208636; File No. 811-23122)
- 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 Insurance Series
- American Funds Mortgage Fund (File No. 333-168595, File No. 811-22449)
- American Funds Multi-Sector Income Fund (File No. 333-228995, File No. 811-23409)
- American Funds Portfolio Series (File No. 333-178936, File No. 811-22656)
- American Funds Retirement Income Portfolio Series (File No. 333-203797, File No. 811-23053)
- American Funds Short-Term Tax-Exempt Bond Fund (File No. 033-26431, File No. 811-05750)
- American Funds Strategic Bond Fund (File No. 333-207474, File No. 811-23101)
- 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 Funds U.S. Government Money Market Fund (File No. 333-157162, File No. 811-22277)
- 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 Group Central Fund Series – Capital Group Central Cash Fund (File No. 811-23391)
- Capital World Bond Fund (File No. 033-12447, File No. 811-05104)
- Intermediate Bond Fund of America (File No. 033-19514, File No. 811-05446)
- 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



Jennifer L. Butler

Steven I. Koszalka

Laurie D. Neat

Michael W. Stockton

Courtney R. Taylor

Jane Y. Chung

Susan K. Countess

Julie E. Lawton

Brian D. Bullard

Brian C. Janssen

Dori Laskin

Hong Le

Gregory F. Niland



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 Los Angeles, CA, this 4th day of March, 2019.

(City, State)





/s/ Alexandra Trower

Alexandra Trower, Board member



POWER OF ATTORNEY



I, Paul S. Williams, the undersigned Board member of the following registered investment companies (collectively, the “Funds”):



- 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 Emerging Markets Bond Fund (File No. 333-208636; File No. 811-23122)
- 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 Insurance Series
- American Funds Mortgage Fund (File No. 333-168595, File No. 811-22449)
- American Funds Multi-Sector Income Fund (File No. 333-228995, File No. 811-23409)
- American Funds Portfolio Series (File No. 333-178936, File No. 811-22656)
- American Funds Retirement Income Portfolio Series (File No. 333-203797, File No. 811-23053)
- American Funds Short-Term Tax-Exempt Bond Fund (File No. 033-26431, File No. 811-05750)
- American Funds Strategic Bond Fund (File No. 333-207474, File No. 811-23101)
- 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 Funds U.S. Government Money Market Fund (File No. 333-157162, File No. 811-22277)
- 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 Group Central Fund Series – Capital Group Central Cash Fund (File No. 811-23391)
- Capital World Bond Fund (File No. 033-12447, File No. 811-05104)
- Intermediate Bond Fund of America (File No. 033-19514, File No. 811-05446)
- 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



Jennifer L. Butler

Steven I. Koszalka

Michael W. Stockton

Courtney R. Taylor

Jane Y. Chung

Susan K. Countess

Julie E. Lawton

Brian D. Bullard

Sandra Chuon

Brian C. Janssen

Hong Le

Gregory F. Niland



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 Chicago, IL this 2nd day of January, 2020.

(City, State)





/s/ Paul S. Williams

Paul S. Williams, Board member



POWER OF ATTORNEY



I, Karl J. Zeile, the undersigned Board member of the following registered investment companies (collectively, the “Funds”):



- American Funds Corporate Bond Fund (File No. 333-183929, File No. 811-22744)
- American Funds Emerging Markets Bond Fund (File No. 333-208636; File No. 811-23122)
- 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 Mortgage Fund (File No. 333-168595, File No. 811-22449)
- American Funds Multi-Sector Income Fund (File No. 333-228995, File No. 811-23409)
- American Funds Short-Term Tax-Exempt Bond Fund (File No. 033-26431, File No. 811-05750)
- American Funds Strategic Bond Fund (File No. 333-207474, File No. 811-23101)
- 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 Funds U.S. Government Money Market Fund (File No. 333-157162, File No. 811-22277)
- 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 Group Central Fund Series – Capital Group Central Cash Fund (File No. 811-23391)
- Capital World Bond Fund (File No. 033-12447, File No. 811-05104)
- Intermediate Bond Fund of America (File No. 033-19514, File No. 811-05446)
- 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



Jennifer L. Butler

Steven I. Koszalka

Laurie D. Neat

Michael W. Stockton

Courtney R. Taylor

Jane Y. Chung

Susan K. Countess

Julie E. Lawton

Brian D. Bullard

Brian C. Janssen

Dori Laskin

Hong Le

Gregory F. Niland



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 Los Angeles, CA, this 4th day of March, 2019.

(City, State)





/s Karl J. Zeile

Karl J. Zeile, Board member



AMERICAN FUNDS EMERGING MARKETS BOND FUND



AMENDED AND RESTATED

INVESTMENT ADVISORY AND SERVICE AGREEMENT





THIS AMENDED AND RESTATED INVESTMENT ADVISORY AND SERVICE AGREEMENT, dated and effective as of the 1st day of May, 2019, is made and entered into by and between AMERICAN FUNDS EMERGING MARKETS BOND FUND, a Delaware statutory trust, (the “Fund”), and CAPITAL RESEARCH AND MANAGEMENT COMPANY, a Delaware corporation (the “Investment Adviser”).





W I T N E S S E T H





The Fund is an open-end non-diversified investment company of the management type, registered under the Investment Company Act of 1940, as amended (the “1940 Act”). The Investment Adviser is registered under the Investment Advisers Act of 1940, as amended, and is engaged in the business of providing investment advisory and related services to the Fund and to other investment companies.



NOW, THEREFORE, in consideration of the premises and the mutual undertaking of the parties, it is covenanted and agreed as follows:



1. The Fund hereby employs the Investment Adviser to provide investment advisory and fund administration services to the Fund. The Investment Adviser hereby accepts such employment and agrees to render the services to the extent herein set forth, for the compensation herein provided. The Investment Adviser shall, for all purposes herein, be deemed an independent contractor and not an agent of the Fund.



2. (a) The Investment Adviser shall provide general management services to the Fund, including overall supervisory responsibility for the general management and investment of the Fund’s assets, giving due consideration to the policies of the Fund as expressed in the Fund’s agreement and declaration of trust, by-laws, registration statement under the 1940 Act and registration statement under the Securities Act of 1933, as amended (the “1933 Act”), as well as to the factors affecting the Fund’s status as a regulated investment company under the Internal Revenue Code of 1986, as amended.



(b) The Investment Adviser may delegate its investment management responsibilities under paragraph 2(a), or a portion thereof, to one or more entities that are direct or indirect subsidiaries of the Investment Adviser or at



least majority owned subsidiaries of The Capital Group Companies, Inc. and registered as investment advisers under the Investment Advisers Act of 1940 (each a “Subsidiary”), pursuant to an agreement between the Investment Adviser and the Subsidiary (the “Subsidiary Agreement”). The Subsidiary Agreement with any Subsidiary to which the Investment Adviser proposes to delegate its investment management responsibilities must be approved by the Fund’s Board of Trustees, including a majority of the Trustees who are not parties to this Agreement nor interested persons of any such party within the meaning of the 1940 Act (“Independent Trustees”). Any delegation of duties pursuant to this paragraph shall comply with all applicable provisions of Section 15 of the 1940 Act, except to the extent permitted by any exemptive order of the U.S. Securities and Exchange Commission (“SEC”) or similar relief.



(c) The Investment Adviser will, subject to the review and approval of the Board of Trustees of the Fund: (i) set the Fund’s overall investment strategies; (ii) except to the extent delegated to one or more Subsidiaries, have full investment discretion for the Fund and make all determinations with respect to the investment of the Fund’s assets, the purchase and sale of portfolio securities with those assets, and any steps that may be necessary to implement any investment decisions; (iii) evaluate, select and recommend Subsidiaries to manage all or a part of the Fund’s assets; (iv) when appropriate, allocate and reallocate the Fund’s assets among multiple Subsidiaries; (v) monitor and evaluate the performance of Subsidiaries; and (vi) implement procedures reasonably designed to ensure that the Subsidiaries comply with the Fund’s investment objective, policies and restrictions. The Investment Adviser shall be solely responsible for paying the fees of any Subsidiary.



(d) Any Subsidiary Agreement may provide that the Subsidiary, subject to the control and supervision of the Fund’s Board of Trustees and the Investment Adviser, shall have full investment discretion for the Fund and shall make all determinations with respect to (i) the investment of the Fund’s assets assigned to the Subsidiary; (ii) the purchase and sale of portfolio securities with those assets, and (iii) any steps that may be necessary to implement an investment decision. The Investment Adviser shall periodically evaluate the continued advisability of retaining any Subsidiary and shall make recommendations to the Fund’s Board of Trustees, as needed.



(e) The Investment Adviser shall furnish the services of persons to perform the executive, administrative, clerical, and bookkeeping functions of the Fund, including the daily determination of net asset value per share. The Investment Adviser shall pay the compensation and travel expenses of all such persons, and they shall serve without any additional compensation from the Fund. The Investment Adviser shall also, at its expense, provide the Fund with necessary office space (which may be in the offices of the Investment Adviser); all necessary office equipment and



utilities; and general purpose forms, supplies, and postage used at the offices of the Fund.



(f) The Investment Adviser shall maintain (and cause each Subsidiary to maintain) all books and records with respect to the Fund’s investment management activities that are required to be maintained pursuant to the 1940 Act and the rules thereunder, as well as any other applicable legal requirements. The Investment Adviser acknowledges and agrees that all such records are the property of the Fund, and it shall maintain and preserve such records in accordance with applicable law and provide such records promptly to the Fund upon request.



(g) The Investment Adviser shall prepare and submit to the Fund all data on the performance of its duties as investment adviser for required filings with governmental agencies or for the preparation of reports to the Board of Trustees or the shareholders of the Fund and shall cause each subsidiary to do so.



(h) The Investment Adviser shall furnish from time to time such other appropriate information as may be reasonably requested by the Fund.



3. The Fund shall pay all its expenses not assumed by the Investment Adviser as provided herein. Such expenses shall include, but shall not be limited to, expenses incurred in connection with the organization of the Fund, its qualification to do business in the State of California, and its registration as an investment company under the 1940 Act; custodian, stock transfer and dividend disbursing fees and expenses; service and distribution expenses pursuant to a plan adopted in accordance with Rule 12b-1 under the 1940 Act; expenses incurred for shareholder servicing, recordkeeping, transactional services, tax and informational returns and fund and shareholder communications; costs of designing and of printing and mailing to its shareholders reports, prospectuses, proxy statements, and notices to its shareholders; taxes; expenses of the issuance, sale, redemption, or repurchase of shares of the Fund (including registration and qualification expenses); legal and auditing fees and expenses; compensation, fees, and expenses paid to Independent Trustees; association dues; and costs of any share certificates, stationery and forms prepared exclusively for the Fund.



4. (a) The Fund shall pay to the Investment Adviser on or before the tenth (10th) day of each month, as compensation for the services rendered by the Investment Adviser during the preceding month a fee calculated at the annual rate of:



0.553% on all assets.



(b) Such fee shall be accrued daily and the daily rate shall be computed based on the actual number of days per year. For the purposes hereof, the net assets of the Fund shall be determined in the manner set forth in the agreement and declaration of trust and registration statement of the Fund. The



advisory fee shall be payable for the period commencing on the date on which operations of the Fund begin and ending on the date of termination hereof and shall be prorated for any fraction of a month at the beginning or the termination of such period.



5. This Agreement may be terminated at any time, without payment of any penalty, by the Trustees of the Fund or by vote of a majority (within the meaning of the 1940 Act) of the outstanding voting securities of the Fund, on sixty (60) days’ written notice to the Investment Adviser, or by the Investment Adviser on like notice to the Fund. Unless sooner terminated in accordance with this provision, this Agreement shall continue until April 30, 2020. It may thereafter be renewed from year to year by mutual consent, provided that such renewal shall be specifically approved at least annually by the Board of Trustees of the Fund, or by vote of a majority (within the meaning of the 1940 Act) of the outstanding voting securities of the Fund. In either event, any such renewal must be approved by a majority of the Independent Trustees at a meeting called for the purpose of voting on such approval.



6. This Agreement shall not be assignable by either party hereto, and in the event of assignment (within the meaning of the 1940 Act) by the Investment Adviser shall automatically be terminated forthwith.



7. Nothing contained in this Agreement shall be construed to prohibit the Investment Adviser from performing investment advisory, management, or distribution services for other investment companies and other persons or companies, nor to prohibit affiliates of the Investment Adviser from engaging in such businesses or in other related or unrelated businesses.



8. The Investment Adviser shall not be liable to the Fund or the Fund’s shareholders for any error of judgment, for any mistake of law, for any loss arising out of any investment or for any act, or omission not involving willful misfeasance, bad faith, gross negligence, or reckless disregard of its obligations and duties hereunder.



9. The obligations of the Fund under this Agreement are not binding upon any of the Trustees, officers, employees, agents or shareholders of the Fund individually, but bind only the Fund’s estate. The Investment Adviser agrees to look solely to the assets of the Fund for the satisfaction of any liability in respect of the Fund under this Agreement and will not seek recourse against such Trustees, officers, employees, agents or shareholders, or any of them, or any of their personal assets for such satisfaction.



10. The Fund acknowledges and agrees that the names, “American Funds” and “Capital” or any derivatives thereof or logo associated with those names are the valuable property of the Investment Adviser and its affiliates, and that the Fund shall have the right to use such names (or derivatives or logos) only so long as



this Agreement shall continue in effect. Upon termination of this Agreement the Fund shall forthwith cease to use such names (or derivatives or logos).









[Remainder of page intentionally left blank.]





IN WITNESS WHEREOF, the parties hereto have caused this instrument to be executed by their officers thereunto duly authorized, as of May 1, 2019.





CAPITAL RESEARCH AND MANAGEMENT COMPANY AMERICAN FUNDS EMERGING MARKETS BOND FUND

By /s/ Robert W. Lovelace By /s/ Steven I. Koszalka
Robert W. Lovelace Steven I. Koszalka
President and Chief Executive Officer Secretary








DEFERRED COMPENSATION PLAN

(Amended and restated, effective as of January 1, 2020)



TABLE OF CONTENTS

Paragraph Title Page No
1. Definitions 2
2. Introduction 5
3. Plan Oversight; Administration and Amendment 5
3.1. Plan Oversight and Operation 5
3.2. Plan Interpretation and Administration 5
3.3. Plan Amendment 5
3.4. Plan Termination 6
4. Election to Defer Payments 6
4.1. Election to Defer 6
4.2. Current Independent Board Members 6
4.2.a. Newly Elected or Appointed Independent Board Members 6
4.3. Modification or Revocation of Election to Defer 6
5. Beneficiary Designation 6

6. Deferred Payment Account 7
6.1. Crediting Amounts 7
6.2. Change of Investment Designation 7
6.3. Exchange Requests 7
6.4. Plan Participants Serving on Money Market Fund Boards 8
6.5. Plan Participant Electing Installment Payout Option under Section 7.4.a 8
6.5a Alternative Instructions under Section 6.5 8
7. Timing and Manner of Payments 8
7.1. Timing of Payments 8
7.2. Manner of Payment – Lump Sum 8
7.3. Alternative Payment Methods 9
7.4. Death of Plan Participant 9
7.4.a Optional Payment Method upon Death for Post-2004 Deferrals 9
7.5. Disability of Plan Participant 10
7.6. Unforeseeable Emergency 10
7.7. Modification or Revocation for Post-2004 Deferrals 10
7.7.a. Special Transition Rule 11
7.8. Modification or Revocation for Pre-2005 Deferrals 11
8. Miscellaneous 11




1. DEFINITIONS


1.1. Administrator. An individual designated by CRMC to process forms and receive Plan related communications from Plan Participants and otherwise assist the Committee in the administration of the Plan.



1.2. Beneficiary(ies). The person or persons last designated in writing by a Plan Participant in accordance with procedures established by the Committee to receive the amounts payable under the Plan in the event of the Plan Participant’s death. A Plan Participant may designate a Primary Beneficiary(ies) to receive amounts payable under the Plan upon the Plan Participant’s death. A Plan Participant may also name a Contingent Beneficiary(ies) to receive amounts payable under the Plan upon the Participant’s death if there is no surviving Primary Beneficiary(ies).



1.3. Board(s). The Board of Directors or Trustees of a Fund(s).



1.4. Committee. A group of Independent Board Members responsible for oversight and operation of the Plan. The Committee must consist of a minimum of three members, each currently serving as an Independent Board Member of at least one Fund. Each Fund, by the affirmative vote of at least a majority of its Board (including a majority of the Fund’s Independent Board Members) shall appoint the initial members of the Committee. Thereafter, the Committee shall determine its membership by majority vote.



1.5. CRMC. Capital Research and Management Company.



1.6. Date of Crediting. The Date of Crediting for compensation deferred by a Plan Participant will be as soon as administratively practicable after the date such compensation would otherwise be paid.



1.7. Deferred Payment Account(s). An account established in the name of the Plan Participant on the books of each Fund serviced by the Plan Participant. Such account shall reflect the number of Phantom Shares credited to the Plan Participant under the Plan.

(i) A Deferred Payment Account will be divided into two separate Deferred Payment Accounts. One account will contain deferrals made prior to January 1, 2005, including any earnings thereon (“pre-2005 deferrals”). The other account will contain deferrals made on or after January 1, 2005, including any earnings thereon (“post-2004 deferrals”).
(ii) For those participants residing outside the U.S., Deferred Payment Accounts will further be divided into two separate accounts, “U.S.” and “Non-U.S.,” to provide appropriate tax reporting.


1.8. Disabled or Disability. A Plan Participant is disabled when he or she is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months.



1.9. Election Forms. The three forms listed below as prescribed by the Administrator:

(i) Beneficiary Designation Form. A form indicating the beneficiary designations of a Plan Participant.
(ii) Deferral Election Form. A form indicating the compensation to be deferred under the Plan and the timing and manner of distribution. This form must be filed with the Administrator prior to the first day of the calendar year to which it first applies. Notwithstanding the foregoing, any person who is first elected or appointed an Independent Board Member of the Fund may file this form before or within 30 days after first becoming an Independent Board Member.
(iii) Rate of Return Election Form. A form indicating the percentages of deferrals allocated to each Fund.


1.10. Fixed Dollar Installment Method. One of the two alternative methods to a lump-sum available for payments under the Plan other than for reasons of death, Disability or Unforeseeable Emergency. The amount of each installment shall equal the fixed dollar amount previously selected by the Plan Participant on the Deferral Election Form. A Plan Participant’s Deferred Payment Account subject to the Fixed Dollar Installment method shall be adjusted by the amount of each such installment payment by reducing the number of Phantom Shares of each Fund credited to the Deferred Payment Account using the net asset values per Class F-2 share as of the last day of the calendar quarter immediately preceding the date of payment. These reductions shall occur proportionately so that, with respect to each such Fund, the ratio of the value of all Phantom Shares of the Fund to the value of the Deferred Payment Account shall remain the same before and after each installment payment.



1.11. Fund(s). A mutual fund advised by CRMC, collectively the “Funds.”



1.12. Independent Board Member(s). Directors or trustees, and as applicable, advisory board members and director or trustee emeriti who are not considered “interested persons” of any Participating Fund.



1.13 Money Market Fund. A mutual fund managed by CRMC that invests solely in money market instruments.



1.14. Participating Funds. Mutual funds managed by CRMC that have adopted the Plan.



1.15. Permissible Payment Event. A Permissible Payment Event is any one of the following:

(i) The date specified on the Deferral Election Form by the Plan Participant that is objectively determinable at the time compensation is deferred under the Plan and is at least twenty-four months past the date of the first deferral election made by the Plan Participant; or


(ii) The date on which the Plan Participant is no longer an Independent Board Member of any Fund; or
(iii) The date the Plan Participant dies; or
(iv) The date the Administrator receives notification that the Plan Participant is Disabled; or
(v) The date the Committee determines that the Plan Participant has an Unforeseeable Emergency; or
(vi) For pre-2005 deferrals only, a distribution event permissible under the terms of the Plan in effect on January 1, 2004.


1.16. Phantom Shares. Fictional shares of the Fund(s) that a Plan Participant has selected on the Rate of Return Election Form that have been credited to his or her Deferred Payment Account(s). Phantom Shares shall have the same economic characteristics as actual Class F-2 shares in terms of mirroring changes in net asset value and reflecting corporate actions (including, without limitation, receipt of dividends and capital gains distributions). However, because Phantom Shares are fictional, they shall not entitle any Plan Participant to vote on matters of any sort, including those affecting the Funds.



1.17. Plan or Deferred Compensation Plan. The deferred compensation plan adopted by the Participating Funds.



1.18. Plan Participant(s). An Independent Board Member who has elected to defer compensation under the Plan, or is receiving payments under the Plan in respect of prior service as an Independent Board Member.



1.19. Unforeseeable Emergency. The following events may constitute an Unforeseeable Emergency under the Plan: (i) severe financial hardship of the Plan Participant or his or her Beneficiary(ies) resulting from illness or accident of the Plan Participant or Beneficiary(ies) and such spouses or dependents of the Plan Participant or Beneficiary(ies); (ii) loss of the Plan Participant’s or Beneficiary(ies)’ property due to casualty or (iii) similar extraordinary unforeseeable circumstances beyond the control of the Plan Participant or the Beneficiary(ies). The Committee, in its sole discretion, will determine if the Plan Participant has an Unforeseeable Emergency, after taking into account the extent to which such Unforeseeable Emergency is or may be relieved through reimbursement or compensation by insurance or otherwise or by liquidation of the Plan Participant's assets (to the extent the liquidation of such assets would not itself cause an Unforeseeable Emergency).



1.20. Variable Dollar Installment Method. One of the two alternative methods to a lump-sum available for payments under the Plan other than for reasons of death, Disability or Unforeseeable Emergency. The amount of each installment shall be determined for a Deferred Payment Account by multiplying the number of Phantom Shares of a Fund(s) allocated to the Deferred Payment Account by a fraction, the numerator of which shall be one and the denominator of which shall be the then remaining number of unpaid installments (including the installment then to be paid), and multiplying the resulting number of Phantom Shares by the net asset value per



Class F-2 share of such Fund(s) as of the last day of the calendar quarter immediately preceding the date of payment. A Plan Participant’s Deferred Payment Account subject to the Variable Dollar Installment method shall be adjusted by the amount of each such installment payment by reducing the number of Phantom Shares of each Fund credited to the Deferred Payment Account. These reductions shall occur proportionately so that, with respect to each such Fund, the ratio of the value of all Phantom Shares of the Fund to the value of the Deferred Payment Account shall remain the same before and after each installment payment. For this purpose, net asset values per Class F-2 share as of the last day of the calendar quarter immediately preceding the date of payment shall be used in calculating pre- and post-payment values.





2. INTRODUCTION


With effect on January 1, 2005, each Participating Fund has adopted, by the affirmative vote of at least a majority of its Board (including a majority of its Board members who are not interested persons of the mutual fund), this Plan for Independent Board Members.





3. PLAN OVERSIGHT; ADMINISTRATION AND AMENDMENT


3.1. Plan Oversight and Operation. The Committee shall enforce the Plan in accordance with its terms, shall be charged with the general administration of the Plan, and shall have all powers necessary to accomplish its purposes. The Committee may utilize the services of the Administrator to conduct routine Plan administration.



3.2. Plan Interpretation and Administration. The Committee shall have full discretion to construe and interpret the terms and provisions of the Plan, which interpretation or construction shall be final and binding on all parties, including, but not limited to, the Funds and any Plan Participant or Beneficiary. The Committee shall administer such terms and provisions in a uniform and non-discriminatory manner and in full accordance with any and all laws and regulations applicable to the Plan.



3.3. Plan Amendment. The Committee may approve any amendment to the Plan; provided, however, (i) that no such amendment shall adversely affect the right of Plan Participants to receive amounts previously credited to their Deferred Payment Accounts; and (ii) each Independent Board Member shall receive notification of any such proposed amendment to the Plan at least ten (10) days prior to the Committee’s consideration of such amendment. Upon receipt of such notification, an Independent Board Member may communicate to the Committee for its consideration any concern or objection to the proposed amendment.





3.4. Plan Termination. The Committee may recommend to the Boards the termination of the Plan; provided, however, that no such termination shall adversely affect the right of Plan Participants to receive amounts previously credited to their Deferred Payment Accounts.





4. ELECTION TO DEFER PAYMENTS
5.


4.1. Election to Defer. Pursuant to the Plan, Independent Board Members may elect to have all or any portion of payment of their compensation deferred as provided herein. An Independent Board Member who elects to participate in the Plan shall file copies of the Election Forms with the Administrator. An Independent Board Member will not be treated as a Plan Participant and no amount will be deferred under the Plan until the Election Forms are received by the Administrator and determined by the Administrator to be complete and in good order.



4.2. Current Independent Board Members. A deferral election made by a Plan Participant who timely files the Election Forms with the Administrator shall become effective and apply with respect to compensation earned during the calendar year following the filing of the deferral election, and each subsequent calendar year, unless modified or revoked in accordance with the terms of this Plan. During the period from such filing and prior to the effectiveness of such election, the most recently filed and effective Deferral Election Form shall apply to all amounts payable to the Plan Participant under the Plan.



4.2.a. Newly Elected or Appointed Independent Board Members. Any person who is first elected or appointed an Independent Board Member of the Fund during a calendar year and who timely files the Election Forms with the Administrator may elect to defer any unpaid and future compensation during such calendar year. Unless revoked or modified in accordance with the terms of this Plan, a deferral election made pursuant to this paragraph will apply for each subsequent calendar year after the year of the deferral election.



4.3. Modification or Revocation of an Election to Defer. A Plan Participant may modify or revoke an election to defer, as to future compensation, effective on the first day of the next calendar year, which modification or revocation shall remain in effect for each subsequent calendar year (until modified or revoked in accordance with the Plan), by filing a new Deferral Election Form with the Administrator prior to the beginning of such next calendar year.





5. BENEFICIARY DESIGNATION


Each Plan Participant shall designate on the Beneficiary Election Form the Primary and, if applicable, Contingent Beneficiary(ies) he or she desires to receive



amounts payable under the Plan in the event of the Plan Participant’s death. A Plan Participant may from time to time change his or her designated Primary or Contingent Beneficiary(ies) without the consent of such Beneficiary(ies) by filing a new Beneficiary Election Form with the Administrator.



At the time of death of a Plan Participant, if there is no living designated Primary Beneficiary(ies), the designated Contingent Beneficiary(ies), if any, shall be the Beneficiary. If there are no living Primary or Contingent Beneficiary(ies), the Plan Participant’s surviving spouse shall be the Beneficiary. If there is no surviving spouse, the Plan Participant’s estate shall be the Beneficiary.





6. DEFERRED PAYMENT ACCOUNT


6.1. Crediting Amounts. A Plan Participant may select one or more Funds in which his or her deferred compensation is invested for purposes of crediting earnings, by filing the Rate of Return Election Form with the Administrator. Any compensation deferred by a Plan Participant shall be credited to his or her Deferred Payment Account on the books of each Fund served by the Plan Participant in the form of Phantom Shares of the Fund(s) that the Plan Participant has selected.



The number of Phantom Shares credited to a Plan Participant’s Deferred Payment Account shall be the number of whole and fractional Phantom Shares determined by dividing the amount of the deferred compensation invested in the particular Fund(s) by the net asset value per Class F-2 share of such Fund(s) as of the Date of Crediting.



6.2. Change of Investment Designation. A Plan Participant may change the designation of the Fund(s) in which his or her future deferred compensation is invested through the participant website or by filing a revised Rate of Return Election Form with, or by telephoning, the Administrator. The Administrator will confirm promptly in writing to the Plan Participant any change of investment designation accomplished by telephone. Any change of investment designation shall be effective only with respect to compensation deferred after receipt of such request. If a request is received after 1:00pm PT, the change in investment designation will be effective the next business day.



6.3. Exchange Requests. By contacting the Administrator or using the participant website, a Plan Participant may request to exchange Phantom Shares of one or more Funds previously credited to a Deferred Payment Account for Phantom Shares of another Fund(s) based on their relative net asset values per Class F-2 share next determined. The Administrator will confirm promptly in writing to the Plan Participant any exchange request made by telephone. An exchange request will be effective after receipt of such request. If a request is received after the close of the New York Stock Exchange, the exchange will be effective on the next business day. An exchange request may relate to one or more Deferred Payment Accounts; however, no more than 12 exchange requests will be processed each calendar year



for all amounts credited under this Plan to any one Plan Participant. For purposes of this limitation, all exchange requests received in one day shall be treated as one exchange request.



6.4. Plan Participants Serving on Money Market Fund Boards. Notwithstanding the other provisions of Section 6, a Plan Participant serving on the Board of a Money Market Fund may select only that Money Market Fund in which his or her compensation is invested for purposes of crediting earnings. In addition, no exchanges will be permitted in a Deferred Payment Account on the books of a Money Market Fund.



6.5. Plan Participant Electing Installment Payout Option under Section 7.4.a. When a Plan Participant elects the limited installment payout option described in Section 7.4.a, all post-2004 deferrals will be exchanged into the appropriate American Funds Target Date Retirement Fund based upon the age of the surviving spouse Beneficiary at the time of the Participant’s death unless alternative instructions are provided in accordance with Section 6.5.a. Such exchange will occur as soon as administratively practicable, but in no event later than thirty (30) days from the date that the Plan Administrator is notified of the Plan Participant’s death. Once this exchange occurs, no further exchanges will be permitted for post-2004 deferrals.



6.5.a. Alternative Instructions under Section 6.5. A Plan Participant electing the limited installment payout option described in Section 7.4.a. may instruct the Administrator to exchange all post-2004 deferrals into one or more Funds, rather than the appropriate American Funds Target Date Retirement Fund as provided for in Section 6.5. A Plan Participant may change instructions provided under this Section 6.5.a. no more than 12 times each calendar year. To be effective, such instructions must be received by the Administrator prior to the Plan Participant’s death.





7. TIMING AND MANNER OF PAYMENTS


7.1. Timing of Payments. Amounts credited to a Deferred Payment Account under the Plan to a Plan Participant shall be paid to the Plan Participant in accordance with the terms of the Plan only upon the occurrence of a Permissible Payment Event.



7.2. Manner of Payment – Lump Sum. Upon the occurrence of a Permissible Payment Event, the amount of payment to a Participant shall be determined by multiplying the number of Phantom Shares of a Fund(s) that have been allocated to the Plan Participant’s Deferred Payment Account subject to the Permissible Payment Event, by the net asset value per Class F-2 share of such Fund(s) as of the date of the Permissible Payment Event.



The payment shall be made to the Plan Participant as soon as administratively practicable, but in no event later than thirty (30) days from the date of the Permissible



Payment Event.



7.3. Alternative Payment Methods. A Plan Participant entitled to payment for reasons other than death, Disability or Unforeseeable Emergency, may elect, instead of a lump-sum payment, to receive annual or quarterly installment payments as specified by the Plan Participant on the Deferral Election Form.



The Plan Participant may elect either the Variable Dollar Installment Method or the Fixed Dollar Installment Method for a period not to exceed thirty (30) years. Once installment payments begin under either method, they cannot be stopped, except in case of death, Disability or Unforeseeable Emergency. Under either method, the first payment to a Plan Participant shall be calculated as of last day of the calendar quarter that contains the Permissible Payment Event. This first payment shall be made to the Plan Participant as soon as administratively practicable thereafter, but in no event later than thirty (30) days after the end of the calendar quarter that contains the Permissible Payment Event. Subsequent payments shall be made within thirty (30) days of the close of future calendar quarters or years, consistent with the Plan Participant’s election of either quarterly or annual installments. As of December 31, 2006, Plan Participants receiving payments under either one of the alternative payment methods will continue to receive payments under the payment schedule existing on that date.



In no event shall a payment under the Fixed Dollar Installment Method relating to a Deferred Payment Account exceed the value of the Deferred Payment Account as of the last day of the calendar quarter immediately preceding the date of payment. If any balance credited to a Plan Participant’s Deferred Payment Account remains positive on the date 30 years from the date of the initial payment to the Plan Participant, then such remaining balance shall be paid to the Plan Participant as soon as practicable thereafter in a single lump sum payment.



The right to a series of installment payments with respect to post-2004 deferrals under the Plan shall be treated as a right to a series of separate payments.



7.4. Death of Plan Participant. If the Plan Participant dies at any time before all amounts in his or her Deferred Payment Accounts have been paid, such remaining amounts shall be paid in a lump-sum to the Plan Participant’s Beneficiary(ies).



7.4.a. Optional Payment Method upon Death for Post-2004 Deferrals. With respect to post-2004 deferrals under the Plan, a Plan Participant may elect for his or her spouse Beneficiary to receive any remaining installment payments due the Plan Participant at his or her death if all four of the following conditions are met:



(i) The spouse was married to the Plan Participant at the time of the Plan Participant’s death.
(ii) The spouse was designated as the sole Beneficiary under the


Plan.

(iii) At the time of the Plan Participant’s death, the timing and manner of distribution election in effect for such Plan Participant was one of the alternative payment methods described in Section 7.3 of the Plan.
(iv) The Plan Participant had begun receiving installment payments described under Section 7.3 of the Plan at the time of his or her death.


An election under this Section 7.4.a must be made at least 12 months before the first scheduled payment under the Plan Participant’s current timing and manner of payment designation.



All installment payments made to a spouse Beneficiary under this section will be made under the same timing and manner of payment election made by the Plan Participant and in effect at the time of the Plan Participant’s death. No changes to the timing or manner of payment will be permitted.



If the spouse Beneficiary dies while there are still post-2004 account balances in the Plan, all remaining post-2004 account balances will be paid to the estate of the spouse Beneficiary as soon as administratively practicable, but in no event later than thirty (30) days from the date of the spouse Beneficiary’s death.



7.5. Disability of Plan Participant. In the event the Plan Participant shall become Disabled before all amounts credited to the Plan Participant’s Deferred Payment Accounts have been paid to him or her, such remaining amounts shall be paid in a lump sum to the Plan Participant.



7.6. Unforeseeable Emergency. If the Committee determines that the Plan Participant has an Unforeseeable Emergency, the Committee may make a lump sum payment to the Plan Participant from his or her Deferred Payment Account(s) in an amount not to exceed the amount necessary to satisfy the emergency need plus any taxes that may be owed on the payment. In the event the payment is less than the value of all of the Plan Participant’s Deferred Payment Accounts, the Deferred Payment Accounts shall be reduced proportionately so that, with respect to each such Fund, the ratio of the value of all Phantom Shares of the Fund to the value of the Deferred Payment Account shall remain the same before and after payment.



7.7. Modification or Revocation for Post-2004 Deferrals. A Plan Participant’s designation as to timing and manner of payments of post-2004 deferrals under the Plan may be modified or revoked by filing a written election with the Administrator. Such designation will not be effective for at least 12 months. To be valid the new designation must (i) be made at least 12 months before the first scheduled payment under the current designation and (ii) delay the first payment by at least 5 years from the date the first payment would otherwise have been made under the current designation. No other modification of the designation as to the timing or manner of



payment will be valid.



7.7.a. Special Transition Rule. Under U.S. Treasury transition relief that extends through December 31, 2008 (or such later date as may be included in further Treasury guidance) a Plan Participant may change the timing or manner of payment of post-2004 deferrals without regard to the limitations described in paragraph 7.7. A Plan Participant may not, however, change the timing of payment with respect to deferrals that would have been paid in the year that he or she uses the transition relief. Furthermore, a Plan Participant may not accelerate post-2004 deferrals into the year that he or she takes advantage of the transition relief.



7.8. Modification or Revocation for Pre-2005 Deferrals. A Plan Participant’s designation as to timing and manner of payments of pre-2005 deferrals under the Plan may be modified or revoked by filing a written election with the Administrator. However, any subsequent designation that would result in a change in the timing of a payment under the Plan or a change in the manner of payments under the Plan shall not be effective unless such subsequent designation is made not less than 12 months prior to the date of the first scheduled payment under the Plan. With respect to such pre-2005 deferrals, the Committee may, in its sole discretion, accelerate the payment of any pre-2005 deferral.





8. MISCELLANEOUS




8.1. Purchase of Underlying Shares. To the extent a Plan Participant’s Deferred Payment Account has been credited with Phantom Shares of a Fund other than the Fund responsible for payment of the compensation being deferred, a Fund may, but shall not be obligated to, purchase and maintain Class F-2 shares of such other Fund in amounts equal in value to such Phantom Shares.



8.2. Unsecured Promise to Pay. Amounts credited to a Plan Participant’s Deferred Payment Account under this Plan shall not be evidenced by any note or other security, funded or secured in any way. No assets of a Fund (including, without limitation, shares of other Funds) shall be segregated for the account of any Plan Participant (or Beneficiary), and Plan Participants (and Beneficiaries) shall be general unsecured creditors for payments due under the Plan.



8.3. Withholding Taxes. The Administrator shall deduct, any federal, state or local taxes and other charges required by law to be withheld.



8.4. Statements. The Administrator, on behalf of each Fund, shall furnish to each Plan Participant a statement showing the balance credited to his or her Deferred Payment Account at least annually.





8.5. Assignment. No amount in a Plan Participant’s Deferred Payment Account may be assigned or transferred by the Plan Participant except by will or the law of descent and distribution.



8.6. Governing Law; Severability. The Plan shall be construed, governed and administered in accordance with the laws and regulations of the United States Treasury Department and the State of California. The Plan is subject to applicable law and regulation and, in the event of changes in such law or regulation, shall be construed and applied in a manner in which the intent of its terms and provisions are best preserved. In the event that one or more provisions of the Plan are held invalid, illegal or unenforceable in any respect on the basis of any particular circumstances or in any jurisdiction, the validity, legality and enforceability of such provision or provisions under other circumstances or in other jurisdictions and of the remaining provisions shall not in any way be affected or impaired.



8.7. Washington Management Corporation. Washington Management Corporation (“WMC”) provided services to the Washington Mutual Investors Fund, The Tax Exempt Fund of Maryland, and The Tax Exempt Fund of Virginia (collectively, the “WMC Funds”). WMC became a wholly-owned subsidiary of CRMC, effective as of December 21, 2012, and ceased to provide services to the WMC Funds after September 1, 2014.



The WMC Funds maintained the Deferred Compensation Plan for Independent Board Members of the WMC Funds (the “WMC Plan”). Effective as of March 21, 2013, each WMC Fund, by the affirmative vote of at least a majority of its Board (including a majority of its Board members who are not interested persons of the mutual fund), merged the WMC Plan into, and adopted, the Plan.



The terms of the Plan shall govern amounts deferred under the WMC Plan, provided that, in the case of a former participant in the WMC Plan, a reference to the terms of the Plan in effect on January 1, 2004 shall be deemed a reference to the terms of the WMC Plan in effect on January 1, 2004. The timing and form of payments of amounts deferred under the WMC Plan as well as elections to defer made under the terms of the WMC Plan shall not be affected by the merger. The terms of this Plan and the merger of the WMC Plan into the Plan are intended to comply with section 409A of the Code.







I am a participant in the Deferred Compensation Plan and I wish my compensation from Board service to all funds deferred as follows:





I elect to defer the following portion of my compensation from the Participating Funds and designated above:[1]



· Compensation as an Independent Board Member: _______%

or

· Compensation as an Independent Board Member excluding money market funds (MMF and CCF): _______%





I understand that, to be effective, this election must be filed with the Administrator of the Plan prior to the first day of the first calendar year to which it applies, except as provided in Section 4.2.a. of the Plan. Once effective, this election will continue until revoked or modified in accordance with the terms of the Plan.



I hereby specify that I shall be entitled to payment of my deferred compensation upon the occurrence of either Permissible Payment Event indicated in the corresponding box (check one), or any other Permissible Payment Event:



q The date on which I am no longer an Independent Board Member of any fund managed by CRMC; or



q The following date which is objectively determinable at the time my compensation is deferred and is at least twenty-four months past the date of the first deferral election made by me (cannot be an “event”):





________________________________________________________





I hereby specify that payments from my Deferred Payment Account(s) for the fund(s) listed above be made beginning within thirty (30) days of the close of the calendar quarter containing the Permissible Payment Event (outlined above):



q In a single lump sum payment;



OR



q In annual q In quarterly variable dollar installment payments over a period of

q 5 years q 10 years q 15 years q years (not to exceed 30);



OR



q In annual q In quarterly fixed dollar payments of $___________each; however, in no event shall any installment payment exceed the balance credited to my Deferred Payment Account on the date immediately preceding the date of payment.



AND (for multiple payments)



q Applicable to Post-2004 deferrals only; continue any remaining installment payments due at my death to my surviving spouse beneficiary per the conditions stated in section 7.4.a of the Plan. Absent this election, post-2004 deferrals will be paid in a lump sum at death.







[1] If clarification regarding deferrals for different Funds is necessary, please attach explanatory sheet.













________________________________________________________________

Name (please print)







___________________________



Date



______________________________________________________________________

Signature





___________________________

SSN or ITIN













I hereby designate the following beneficiary(ies) to receive any death benefit payable on account of my participation in the Deferred Compensation Plan.





Primary Beneficiary(ies):



1. Name:______________________________________ % Share:_____________________

Address:__________________________________________________________________

Relationship:______________________________________________________________

Date of Birth:___________________ Social Security #:_____________________

Trust Name and Date (if beneficiary is a trust):_________________________________

Trustee of Trust:____________________________________________________________



2. Name:______________________________________ % Share:_____________________

Address:__________________________________________________________________

Relationship:______________________________________________________________

Date of Birth:___________________ Social Security #:_____________________

Trust Name and Date (if beneficiary is a trust):_________________________________

Trustee of Trust:____________________________________________________________



Contingent Beneficiary(ies):



1. Name:______________________________________ % Share:_____________________

Address:__________________________________________________________________

Relationship:______________________________________________________________

Date of Birth:___________________ Social Security #:_____________________

Trust Name and Date (if beneficiary is a trust):_________________________________

Trustee of Trust:____________________________________________________________



2. Name:______________________________________ % Share:_____________________

Address:__________________________________________________________________

Relationship:______________________________________________________________

Date of Birth:____________________ Social Security #:_____________________

Trust Name and Date (if beneficiary is a trust):_________________________________

Trustee of Trust:____________________________________________________________



I understand that payment will be made to my Contingent Beneficiary(ies) only if there is no surviving Primary



Beneficiary(ies).





__________________________________________________________________

Participant’s Name (please print)





______________________

Date





__________________________________________________________________

Participant’s Signature









I am a participant in the Deferred Compensation Plan and I wish my compensation from Board service to all funds invested as follows:



With respect to future earnings, I hereby elect to have amounts credited to my Deferred Payment Account(s) for the fund(s) listed above invested in Class F-2 shares of the specified funds:



*I understand that if I serve on the Board of a money market fund, I may only have amounts credited to my Deferred Payment Account for that money market fund with respect to future earnings invested in the applicable Class F-2 or M shares of that particular money market fund.













































FUNDS

AMCAP Fund (AMCAP)

American Balanced Fund (AMBAL)

American Funds Corporate Bond Fund (CBF)

American Funds Developing World Growth and Income Fund (DWGI)

American Funds Emerging Markets Bond Fund (EMBF)

American Funds Fundamental Investors (FI)

American Funds Global Insight Fund (GIF)

American Funds Global Balanced Fund (GBAL)

American Funds Inflation Linked Bond Fund (ILBF)

American Funds International Vantage Fund (IVE)

American Funds U.S. Government Money Market Fund* (MMF)

American Funds Mortgage Fund (AFMF)

American Funds Short-Term Tax-Exempt Bond Fund (STEX)

American Funds Strategic Bond Fund (SBF)

American Funds Tax-Exempt Fund of New York (TEFNY)

American High-Income Municipal Bond Fund (AHIM)

American High-Income Trust (AHIT)

American Mutual Fund (AMF)

The Bond Fund of America (BFA)

Capital Group Central Cash Fund* (CCF)

Capital Income Builder (CIB)

Capital World Bond Fund (WBF)

Capital World Growth and Income Fund (WGI)

EuroPacific Growth Fund (EUPAC)

The Growth Fund of America (GFA)

The Income Fund of America (IFA)

Intermediate Bond Fund of America (IBFA)

International Growth and Income Fund (IGI)

The Investment Company of America (ICA)

Limited Term Tax-Exempt Bond Fund of America (LTEX)

The New Economy Fund (NEF)

New Perspective Fund (NPF)

New World Fund, Inc. (NWF)

Short-Term Bond Fund of America (STBF)

SMALLCAP World Fund, Inc. (SCWF)

The Tax-Exempt Bond Fund of America (TEBF)

The Tax-Exempt Fund of California (TEFCA)

U.S. Government Securities Fund (GVT)

% ALLOCATION

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %





With respect to future earnings, I hereby elect to have amounts credited to my Deferred Payment Account(s) for the fund(s) listed above invested in Class F-2 shares of the specified funds:



*I understand that if I serve on the Board of a money market fund, I may only have amounts credited to my Deferred Payment Account for that money market fund with respect to future earnings invested in the applicable Class F-2 or M shares of that particular money market fund.

FUNDS

Washington Mutual Investors Fund (WMIF)

American Funds 2060 Target Date Retirement Fund (AFTD60)

American Funds 2055 Target Date Retirement Fund (AFTD55)

American Funds 2050 Target Date Retirement Fund (AFTD50)

American Funds 2045 Target Date Retirement Fund (AFTD45)

American Funds 2040 Target Date Retirement Fund (AFTD40)

American Funds 2035 Target Date Retirement Fund (AFTD35)

American Funds 2030 Target Date Retirement Fund (AFTD30)

American Funds 2025 Target Date Retirement Fund (AFTD25)

American Funds 2020 Target Date Retirement Fund (AFTD20)

American Funds 2015 Target Date Retirement Fund (AFTD15)

American Funds 2010 Target Date Retirement Fund (AFTD10)

American Funds Global Growth Portfolio (PSGG)

American Funds Growth Portfolio (PSG)

American Funds Growth and Income Portfolio (PSGI)

American Funds Moderate Growth and Income Portfolio (PSMGI)

American Funds Conservative Growth and Income Portfolio (PSCGI)

American Funds Tax-Aware Conservative Growth and Income Portfolio (PSTACGI)

American Funds Preservation Portfolio (PSP)

American Funds Tax-Exempt Preservation Portfolio (PSTEP)

American Funds Retirement Income Portfolio Series – Conservative (RIC)

American Funds Retirement Income Portfolio Series – Moderate (RIM)

American Funds Retirement Income Portfolio Series – Enhanced (RIE)

% ALLOCATION

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %

____ %



____ %

____ %

____ %

____ %

____ %

____ %

____ %





I have read and understand this Rate of Return Election Form. I understand that earnings credited to my Deferred Payment Account(s) under the Plan in accordance with this Form shall be credited in the form of Phantom Shares rather than actual shares. I further state that I have reviewed the prospectus for each designated mutual fund.





___________________________________________________________

Name (please print)





______________________

Date





___________________________________________________________

Signature







CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



We consent to the use in this Post-Effective Amendment No. 12 to Registration Statement No. 333-208636 on Form N-1A of our report dated February 12, 2020, relating to the financial statements and financial highlights of American Funds Emerging Markets Bond Fund appearing in the Statement of Additional Information, which is part of such Registration Statement, and to the references to us under the headings “Financial highlights” in the Prospectus and “Independent registered public accounting firm” and “Prospectuses, reports to shareholders and proxy statements” in the Statement of Additional Information, which are part of such Registration Statement.





DELOITTE & TOUCHE LLP





Costa Mesa, California

February 24, 2020





[logo - The Capital Group]







Code of Ethics





December 2019



Guidelines



Capital Group associates are responsible for maintaining the highest ethical standards. The Code of Ethics is intended to help associates observe exemplary standards of integrity, honesty and trust. It sets out standards for our personal conduct, including personal investing, gifts and entertainment, outside business interests and affiliations, political contributions, insider trading, and client confidentiality.



Our fund shareholders and clients have placed their trust in Capital to manage their assets. As investment advisers, we act as fiduciaries to our clients. This means we owe them both a duty of care and a duty of loyalty.



Capital has earned a reputation over many years for acting with the highest integrity and ethics. Reputations are fragile, however, and Capital’s reputation can be harmed if any of us fails to act ethically and in the best interests of our clients. We each must hold ourselves to the highest standards of behavior, regardless of business custom, and strive to avoid even the appearance of impropriety. We all share this responsibility — if you have any doubt whether an action or circumstance is consistent with our standards, raise it.



Associates should be aware that their actions outside of the workplace can reflect on the ethics of our organization and potentially harm our reputation. For this reason, associates should exercise caution and good judgment in order to avoid having their actions outside of the workplace impact Capital, our workplace or our associates.



No set of rules can anticipate every possible situation, so it is essential that associates adhere to the spirit as well as the letter of the Code of Ethics. Any activity that compromises the trust our clients have placed in us, even if it does not expressly violate a rule, has the potential to harm our reputation. Associates are reminded of one of Capital’s core principles: that we must do the right thing as a matter of principle, not just in observance of policy.



In addition to the specific policies described below, associates have the following fundamental obligations under the Code of Ethics:

Associates must avoid those situations that might place, or appear to place, their personal interests in conflict with the interests of Capital, our clients or fund shareholders.
· Associates must not take advantage of their role with Capital to benefit themselves or another party.
Associates must comply with the laws, rules and regulations that apply to us in the conduct of our business.
Associates must promptly report violations of the Code of Ethics.
It is important that all associates comply with the Code of Ethics, including its related guidelines and policies. Failure to do so could result in disciplinary action, including termination.



Questions regarding the Code of Ethics may be directed to the Code of Ethics Team.







Protecting sensitive information



Antifraud provisions of U.S. securities laws as well as the laws of other countries generally prohibit persons in possession of material non-public information from trading on or communicating the information to others. Associates who believe they may have material non-public information should contact a member of the Legal staff.



Capital Group regularly creates, collects and maintains valuable proprietary information, which is essential to our business operations and the performance of services for our clients. This information derives its value, in part, from not being generally known outside of Capital (hereinafter “Confidential Information”). It includes confidential electronic information in any medium, hard-copy information, and information shared orally or visually (such as by telephone or video conference). The confidentiality, integrity and limited availability of such information is regarded as fundamental to the successful business operations of Capital Group. The purpose of this Confidential Information Policy is to protect our information from disclosure – intentional or inadvertent – and to ensure that associates understand their obligation to protect and maintain its confidentiality.



Extravagant or excessive gifts and entertainment



Associates should not accept extravagant or excessive gifts or entertainment from persons or companies that conduct or may conduct business with Capital. Please see below for a summary of the Gifts and Entertainment Policy.



No special treatment from broker-dealers



Associates may not accept negotiated commission rates or any other terms they believe may be more favorable than the broker-dealer grants to accounts with similar characteristics. U.S. broker-dealers are subject to certain rules designed to prevent favoritism toward such accounts. Favors or preferential treatment from broker-dealers may not be accepted. This rule applies to the associate’s spouse/spouse equivalent and any immediate family member residing in the same household.



No excessive trading of Capital-affiliated funds



Associates should not engage in excessive trading of the American Funds or other Capital-managed investment vehicles worldwide in order to take advantage of short-term market movements. Excessive activity, such as a frequent pattern of exchanges, could involve actual or potential harm to shareholders or clients. This rule applies to the associate’s spouse/spouse equivalent and any immediate family member residing in the same household.







Ban on Initial Public Offerings (IPOs) and Initial Coin Offerings (ICOs)



All associates and immediate family members residing in the same household may not participate in IPOs or ICOs.



Exceptions for participation in IPOs are rarely granted; however, they will be considered on a case-by-case basis (for example, where a family member is employed by the IPO company and IPO shares are considered part of that family member’s compensation).



Avoiding conflicts



Associates must avoid conflicts of interest that can occur when their business, financial or other interests interfere, or reasonably appear to interfere, with their duty to serve the interests of Capital and our clients. Conflicts of interest include any situation where financial or other personal factors compromise objectivity or professional judgment. Even the appearance of conflict could negatively impact Capital and harm our reputation.



Portfolio managers and investment analysts should be aware of the potential conflicts that can arise when they invest on behalf of fund shareholders and clients. The investments we make for our clients must be based on their best interests, and should not be, or appear to be, based on the self-interest of our associates. Accordingly, members of the investment group must disclose to the Code of Ethics Team if they or any of their family members, such as parents, children, siblings, in-laws or other family members with whom they have a close relationship, has a material business, financial or personal relationship with a company that they hold or are eligible to purchase professionally. Examples of a material relationship include: (1) a family member serving as a senior officer or executive of a portfolio company, (2) significant beneficial ownership of a portfolio company by the associate or their family members, and (3) involvement by the associate or a family member in a significant transaction or business opportunity with a portfolio company.



In addition, associates should avoid conflicts related to Capital’s business, and therefore must not:

Engage in a business that competes, directly or indirectly, with the interests of Capital, or is related to their role or responsibilities at Capital;
Act for Capital in any transaction or business relationship that involves the associate, members of their family or other people or organizations with whom the associate or their family members have a significant personal connection or financial interest;
Negotiate with Capital on behalf of any such people or organizations; or
Use or attempt to use their position at Capital to obtain any improper personal benefit for themselves, family member(s) or any other party.
No policy can anticipate every possible conflict of interest and all associates must be vigilant in guarding against anything that could color our judgment. Any associate who is aware of a transaction or relationship that could reasonably be expected to give rise to a conflict of interest or perceived conflict of interest must disclose the matter promptly to a member of the Code of Ethics Team. If there is any doubt or if something does not feel consistent with our standards, raise the issue.



Any changes in a previously disclosed potential conflict, outside business interest or affiliation that could be relevant to an evaluation of a potential conflict must also be promptly disclosed. Examples of changes to disclose include: (1) a change in research coverage of an investment analyst to include a company with a family member serving as a senior executive (even if the senior executive relationship had previously been disclosed) and (2) a change in an associate’s role to trader if the associate had previously disclosed a sibling who works as a sell-side trader.



Outside business interests/affiliations



Associates must obtain approval from the Code of Ethics Team to serve on the board of directors or as an advisory board member of any public or private company. This rule does not apply to: (1) boards of Capital companies or funds; (2) board service that is a direct result of the associate’s responsibilities at Capital, such as for portfolio companies of private equity funds managed by Capital; or (3) boards of non-profit and charitable organizations.



In addition, associates must disclose to the Code of Ethics Team if they or any of their family members, such as parents, children, siblings, in-laws or other family members with whom they have a close relationship:

· serves as a board director or as an advisory board member of,
· holds a senior officer position, such as CEO, CFO or Treasurer with, or
· owns 5% or more, individually or together with other such family members, of
any public company or any private company that may be reasonably expected to go public.



Family members employed by a financial institution

Associates who are “Covered Associates” (as defined below) must disclose if any of their family members, such as parents, children, siblings, in-laws or other family members with whom they have a close relationship, is employed by a broker-dealer, investment adviser or other firm that provides investment research or trade execution services to Capital.



Requests for approval or questions may be directed to the Code of Ethics Team.



Other guidelines



Statements and disclosures about Capital, including those made to fund shareholders and clients and in regulatory filings, should be accurate and not misleading.









Reporting requirements



Annual certification of the Code of Ethics



All associates are required to certify at least annually that they have read and understand the Code of Ethics. Questions or issues relating to the Code of Ethics should be directed to the associate’s manager or the Code of Ethics Team.



Reporting violations



All associates are responsible for complying with the Code of Ethics. As part of that responsibility, associates are obligated to report violations of the Code of Ethics promptly, including: (1) fraud or illegal acts involving any aspect of Capital’s business; (2) noncompliance with applicable laws, rules and regulations; (3) intentional or material misstatements in regulatory filings, internal books and records, or client records and reports; or (4) activity that is harmful to fund shareholders or clients. Deviations from controls or procedures that safeguard Capital, including the assets of shareholders and clients, should also be reported. Reported violations of the Code of Ethics will be investigated and appropriate action will be taken, which may include reporting the matter to the firm’s regulator if determined to be appropriate by legal counsel. Once a violation has been reported, all associates are required to cooperate with Capital in the internal investigation of any matter by providing honest, truthful and complete information.



Associates may report confidentially to a manager/department head or to the Open Line Committee.

Associates may also contact the Chief Compliance Officers of CB&T, CIInc, CRC, or CRMC, or legal counsel employed with Capital.



Capital strictly prohibits retaliation against any associate who in good faith makes a complaint, raises a concern, provides information or otherwise assists in an investigation regarding any conduct that he or she reasonably believes to be in violation of the Code of Ethics. This policy is designed to ensure that associates comply with their obligations to report violations without fear of retaliation.



Policies



Capital’s policies regarding gifts and entertainment, political contributions, insider trading and personal investing are summarized below.



Gifts and Entertainment Policy



Under the Gifts and Entertainment Policy, associates may not receive or extend gifts or entertainment that are excessive, repetitive or extravagant, if such gifts or entertainment involve a government official or are due to a third party’s business relationship (or prospective business relationship) with Capital. The Policy is intended to ensure that gifts and entertainment involving associates do not raise questions of propriety regarding Capital’s business relationships or prospective business relationships, or Capital’s interactions with government officials.



Accordingly, for gifts and entertainment involving those who conduct, or may conduct, business with Capital:

· An associate may not accept gifts from (or give gifts to) the same person or entity worth more than $100 (or the local currency equivalent) in a 12-month calendar year period.
· An associate may not accept or extend entertainment valued at over $500 (or the local currency equivalent) unless a business reason exists for such entertainment and the entertainment is pre-approved by the associate’s manager and the Code of Ethics Team. Trading department associates are prohibited from accepting entertainment, regardless of value.
Gifts or entertainment extended to a private-sector person by a Capital associate and approved by the associate’s manager for reimbursement by Capital do not need to be reported (or precleared). Trading department associates should report gifts and entertainment extended regardless of reimbursement. Note: Separate policies regarding extending business gifts or entertainment apply to AFD and CGIIS associates. Dollar amounts refer to U.S. dollars.



Capital Group is registered as a federal lobbyist and special rules apply to gifts and entertainment involving government officials and employees as a result. Associates must receive approval from Capital’s Code of Ethics Team prior to either: (1) hosting a federal government official or employee at a Capital facility if anything of value (e.g. food, tangible item) will be presented to that individual; or (2) providing anything of value to a federal government official or employee if Capital will pay or reimburse for the related cost.



Reporting



The limitations relating to gifts and entertainment apply to all associates as described above, and associates will be asked to complete quarterly disclosures. Associates must report any gift exceeding $50 and business entertainment in which an event exceeds $75 (although it is recommended that associates report all gifts and entertainment). Trading department associates should notify the Code of Ethics Team when gifts are received and report such gifts quarterly, whether the gift is received by an individual associate or by a department. In addition, trading associates should report gifts and entertainment extended regardless of reimbursement.



Charitable contributions



Associates must not allow Capital’s present or anticipated business to be a factor in soliciting political or charitable contributions from outside parties. In addition, it is generally not appropriate to solicit these outside parties or Capital associates for donations to a family-run non-profit organization, family foundation, donor-advised fund or other charitable organization in which an associate or their family members are significantly involved. Board membership alone would not be considered significant involvement.



Gifts and Entertainment Committee



The Gifts and Entertainment Committee oversees administration of the Policy. Questions regarding the Gifts and Entertainment Policy may be directed to the Code of Ethics Team.







Political Contributions Policy



Associates must be cautious when engaging in personal political activities, particularly when supporting officials, candidates, or organizations that may be in a position to influence decisions to award business to investment management firms. Associates should not make political contributions to officials or candidates (in any country) for the purpose of influencing the hiring of a Capital Group company as an advisor to a governmental entity. Associates are encouraged to contact the Code of Ethics Team with any questions about this policy.



Associates may not use Capital offices or equipment to engage in political fundraising or solicitation activity, for example, hosting a fundraising event at the office or using Capital phones or email systems to help solicit donations for an elected official, a candidate, Political Action Committee (PAC) or political party. Associates may volunteer their time on behalf of a candidate or political organization, but should limit volunteer activities to non-work hours.



For contributions or activities supporting candidates or political organizations within the U.S., we have adopted the guidelines set forth below, which apply to associates classified as “Restricted Associates.”

Guidelines for political contributions and activities within the U.S.


U.S. Securities and Exchange Commission (SEC) regulations limit political contributions to certain Covered Government Officials by certain employees of investment advisory firms and certain affiliated companies. “Covered Government Official,” for purposes of the Political Contributions Policy, is defined as: (1) a state or local official; (2) a candidate for state or local office; or (3) a federal candidate currently holding state or local office.



Many U.S. cities and states have also adopted regulations restricting political contributions by associates of investment management firms seeking to provide services to a governmental entity. Some associates are also subject to these regulations.



Restricted Associates



Certain associates are deemed “Restricted Associates” under this Policy. Restricted Associates include (1) “covered associates” as defined in the SEC’s rule relating to political contributions by investment advisers (Rule 206(4)-5 under the Investment Advisors Act of 1940); and (2) other associates who do not meet that definition but whom Capital has determined should be subject to the restrictions on political contributions contained in the Policy based on their roles and responsibilities at Capital. Contributions by Restricted Associates and their spouse/spouse equivalent are subject to specific limitations, preclearance, and reporting requirements as described below.



Preclearance of political contributions



Contributions by Restricted Associates to any of the following must be precleared:

State or local officials, or candidates for state or local office
Federal candidate campaigns and affiliated committees, including federal incumbents and presidential candidates


Political organizations such as Political Action Committees (PACs), Super PACs and 527 organizations and ballot measure committees
Non-profit organizations that may engage in political activities, such as 501(c)(4) and 501(c)(6) organizations
Restricted Associates must also preclear U.S. political contributions by their spouse/spouse equivalent to any of the foregoing, as well as contributions to any state, local or federal political party or political party committee, if the aggregate contributions by the Restricted Associate and spouse/spouse equivalent to any one candidate or political entity exceed $50,000 in a calendar year.



Certain documentation is required for contributions to Covered Governmental Officials, PACs or Super PACs, and may be required for contributions to other entities that engage in political activity. See “Required documentation” below for further details. To preclear a contribution, please contact the Code of Ethics Team.



Contributions include:

· Monetary contributions, gifts or loans
· “In kind” contributions (for example, donations of goods or services or underwriting or hosting fundraisers)
· Contributions to help pay a debt incurred in connection with an election (including transition or inaugural expenses, and purchasing tickets to inaugural events)
· Contributions to joint fund-raising committees
· Contributions made by a Political Action Committee (PAC) controlled by a Restricted Associate[1]
Please contact the Code of Ethics Team to preclear a contribution.



[1] “Control” for this purpose includes service as an officer or member of the board (or other governing body) of a PAC.



Required documentation



Restricted Associates must obtain additional documentation from an independent legal authority before they will be approved to contribute to Covered Government Officials. The purpose of the legal documentation is to verify that a specific state or local office does not have the ability to directly or indirectly influence the awarding of business to an investment manager. For contributions to PACs, Super PACs, or other entities that engage in political activities, Restricted Associates may be required to obtain a certification that the entity does not contribute to Covered Government Officials. The Code of Ethics Team will provide language for the documentation when you preclear the contribution.



If a candidate currently holds a state/local office and is running for a different state/local office, legal documentation must be obtained for both the current position and the office for which the candidate is running. Exceptions to the documentation requirements may be granted on a case-by-case basis.







Special political contribution requirements – CollegeAmerica



Certain associates involved with “CollegeAmerica,” the American Funds 529 college savings plan sponsored by the Commonwealth of Virginia, are subject to additional restrictions which prohibit them from contributing to Virginia political candidates or parties.



Administration of the Political Contributions Policy



The U.S. Public Policy Coordinating Group oversees the administration of this Policy, including considering and granting possible exceptions. Questions regarding the Political Contributions Policy may be directed to the Code of Ethics Team.



Insider Trading Policy



Antifraud provisions of U.S. securities laws as well as the laws of other countries generally prohibit persons in possession of material non-public information from trading on or communicating the information to others. Sanctions for violations can include civil injunctions, permanent bars from the securities industry, civil penalties up to three times the profits made or losses avoided, criminal fines and jail sentences. In addition, trading in fund shares while in possession of material, non-public information that may have an immediate impact on the value of the fund’s shares may constitute insider trading.



While investment research analysts are most likely to come in contact with material non-public information, the rules (and sanctions) in this area apply to all Capital associates and extend to activities both within and outside each associate's duties. Associates who believe they have material non-public information should contact any lawyer in the organization.



Personal Investing Policy



This policy applies only to “Covered Associates.” Special rules apply to certain associates in some non-U.S. offices.



The Personal Investing Policy (Policy) sets forth specific rules regarding personal investments that apply to "covered" associates. These associates may have access to confidential information that places them in a position of special trust. Under the Code of Ethics, associates are responsible for maintaining the highest ethical standards. Associates are reminded that the requirements of the Code of Ethics apply to personal investing activities, even if the matter is not covered by a specific provision of the Policy.



Personal investing should be viewed as a privilege, not a right. As such, the Personal Investing Committee may place limitations on the number of preclearance requests and/or transactions associates make.



Covered Associates



“Covered Associates” are associates with access to non-public information relating to current or imminent fund/client transactions, investment recommendations or fund portfolio holdings.
The Policy applies to the personal investments of Covered Associates and their spouses/spouse



equivalents and other immediate family members (for example, children, siblings and parents) residing in the same household.



Questions regarding coverage status should be directed to the Code of Ethics Team.



Additional rules apply to Investment Professionals



“Investment Professionals” include portfolio managers, investment counselors, investment analysts and research associates, investment group administrative assistants, portfolio specialists, investment specialists, trading associates, and global investment control and fixed income control associates, including assistants. See “Additional policies for Investment Professionals” below for more details.



Prohibited transactions



The following transactions are prohibited:

· Initial Public Offering (IPO) investments (this prohibition applies to all Capital associates)
Note: Exceptions are rarely granted; however, they will be considered on a case-by-case basis (for example, where a family member is employed by the IPO company and IPO shares are considered part of that family member’s compensation).

· Initial Coin Offering (ICO) investments (this prohibition applies to all Capital associates)
· Short selling of securities subject to preclearance
· Investments by Investment Professionals in short ETFs except those based on certain broad-based indices
· Spread betting/contracts for difference (CFD) on securities (allowed only on currencies, commodities, and broad-based indices)
· Writing puts and calls on securities subject to preclearance


Reporting requirements



Covered Associates are required to report any securities accounts, holdings and transactions: (1) in which the Covered Associate or any immediate family member residing in the same household has a beneficial interest, including the opportunity to directly or indirectly profit or otherwise obtain financial benefits from any interest in a security or (2) over which the Covered Associate or any immediate family member residing in the same household exercises investment discretion or has direct or indirect influence or control. Quarterly and annual certifications of accounts, holdings and transactions must also be submitted. An electronic reporting platform is available for these disclosures.



Examples of accounts that must be disclosed include: (1) trusts for which the Covered Associate or family member serves as trustee, custodian or is a beneficiary, and (2) accounts of another person or entity if the Covered Associate or family member makes or influences investment decisions, such as by suggesting purchases and sales of securities in the account. The obligation to disclose accounts includes discretionary (professionally managed) accounts.





Covered Associates should immediately notify the Code of Ethics Team when opening new securities accounts; associates may also disclose accounts by logging into Protegent PTA and entering the account information directly.



Newly hired U.S.-based associates and associates transferring into a position designated as “covered” are required to maintain their brokerage accounts with electronic reporting firms. This requirement includes immediate family members living in the same household. There are some exceptions to this requirement which include discretionary accounts, employer-sponsored retirement accounts, and employee stock purchase plans.



Duplicate statements and trade confirmations (or equivalent documentation) are required for accounts holding securities subject to preclearance and/or reporting. This requirement includes employer-sponsored retirement accounts and employee stock purchase plans (ESPP, ESOP, 401(k)). Documentation allowing the acquisition of shares via an employer-sponsored plan may be required.



Preclearance procedures



Certain transactions may be exempt from preclearance; please refer to the Personal Investing Policy for more details.



Before any purchase or sale of securities subject to preclearance, including securities that are not publicly traded, Covered Associates must receive approval from the Code of Ethics Team. This requirement applies to any purchase or sale of securities in which the Covered Associate or any immediate family member residing in the same household has, or by reason of such transaction may acquire, any beneficial interest, as well as any security over which the Covered Associate or any such family member has direct or indirect influence or control. Transactions in professionally managed accounts are not subject to preclearance. Please refer to the Personal Investing Policy for more details on preclearable securities.



Submitting preclearance requests



To submit a preclear request, log into Protegent PTA. Covered Associates should then click on the Preclear button on the Dashboard and enter the request details.



For assistance or questions, please contact the Code of Ethics Team.



Preclearance requests will be handled during the hours the New York Stock Exchange (NYSE) is open, generally 6:30am to 1:00pm Pacific Time. A response to requests will generally be sent within one business day.



Transactions will generally not be permitted in securities on days the funds or clients are transacting in the issuer in question. In the case of Investment Professionals, permission to transact will be denied if the transaction would violate the seven-day blackout or short-term trading policies (see “Additional policies for Investment Professionals” below). Preclearance requests by Investment Professionals are subject to special review.



Preclearance will generally not be approved for analysts’ transactions involving securities held in their professional portfolio(s) or if the issuer of such securities falls within their industry research responsibilities or a related industry.





Unless a different period is specified, clearance is good until the close of the NYSE on the day of the request. Associates from offices outside the U.S. and/or associates trading on non-U.S. exchanges are usually granted enough time to complete their transaction during the next available trading day.



If the precleared trade has not been executed within the cleared timeframe, preclearance must be requested again. For this reason, the following are strongly discouraged:

· Limit orders (for example, stop loss and good-till-canceled orders)
· Margin accounts
Private investments or other limited offerings



Participation in private investments or other limited offerings are subject to special review. The following types of private investments must be precleared:

· Hedge funds
· Investments in private companies
· Private equity funds
· Private funds
· Private placements
· Venture capital funds
In addition, opportunities to acquire a stock that is "limited" (that is, a broker-dealer is only given a certain number of shares to sell and is offering the opportunity to buy) may be subject to the Gifts and Entertainment Policy.



Preclearance procedures for private investments



Preclear private investments by contacting the Code of Ethics Team.



To make a subsequent investment, or increase a previously approved investment, a new Private Investment Preclear Form must be submitted and approval received before making the subsequent or increased investment.



Additional policies for Investment Professionals



Disclosure of personal and professional holdings (cross-holdings)



Portfolio managers, investment analysts, portfolio specialists and certain investment specialists will be asked to disclose securities they own both personally and professionally on a quarterly basis. Analysts will also be required to disclose securities they hold personally that are within their research responsibilities or could be eligible for recommendation by the analyst professionally in the future in light of current research responsibilities. This disclosure must be made to the Code of Ethics Team, and may be reviewed by various Capital committees.



If disclosure has not already been made to the Code of Ethics Team, any associate who is in a position to recommend a security that the associate owns personally for purchase or sale in a fund or client account should first disclose such personal ownership either in writing (in a



company write-up) or verbally (when discussing the company at investment meetings) prior to making a recommendation. This disclosure requirement is consistent with both the CFA Institute standards as well as the ICI Advisory Group Guidelines.



In addition, portfolio managers, investment analysts, portfolio specialists and certain investment specialists are encouraged to notify investment/portfolio/fixed-income control of personal ownership of securities when placing an order (especially with respect to a first-time purchase).



Blackout periods



Investment Professionals may not buy or sell a security during the period seven calendar days after a fund or client account transacts in that issuer. The blackout period applies to trades in the same management company with which the associate is affiliated.



If a fund or client account transaction takes place in the seven calendar days following a transaction executed by an Investment Professional, the personal transaction may be reviewed by the Personal Investing Committee to determine the appropriate action, if any. For example, the Personal Investing Committee may recommend the associate be subject to a price adjustment.



Ban on short-term trading



Investment Professionals are generally prohibited from the purchase and sale or sale and purchase of a security within 60 calendar days. This restriction applies to securities subject to preclearance and the investment vehicles listed below. However, if a situation arises whereby the associate is attempting to take a tax loss, an exception may be made. This restriction applies to the purchase of an option and the sale of an option, or the purchase of an option and the exercise of the option and sale of shares within 60 days. Although the associate may be granted preclearance at the time the option is purchased, there is a risk of being denied permission to sell the option or exercise and sell the underlying security. Accordingly, transactions in options on individual securities are strongly discouraged.



This ban applies to the following investment vehicles based on certain broad-based indices:

· ETFs
· ETF options and futures
· Index futures


Exchange-traded funds (ETFs)



Investment Professionals must preclear ETFs (including UCITS, SICAVs, OEICs, FCPs, Unit Trusts and Publikumsfonds) except those based on certain broad-based indices. Investment Professionals are prohibited from investing in short ETFs that are not based on certain broad-based indices.



Although Investment Professionals may invest in ETFs based on certain broad-based indices without preclearance, the ban on short-term trading still applies.







Penalties for violating the Personal Investing Policy



Covered Associates may be subject to penalties for violating the Personal Investing Policy, such as restrictions on personal trading. Violations to the Policy include failing to preclear or report securities transactions, failing to report securities accounts or submit statements, and failing to submit timely initial, quarterly and annual certification forms.



Failure to adhere to the Personal Investing Policy may include penalties such as restrictions on personal trading and other disciplinary action, up to and including termination.



Personal Investing Committee



The Personal Investing Committee oversees the administration of the Policy. Among other duties, the Committee considers certain types of preclearance requests as well as requests for exceptions to the Policy.



Questions regarding the Personal Investing Policy may be directed to the Code of Ethics Team.



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Questions regarding the Code of Ethics may be directed to the Code of Ethics Team.











[Logo – American Funds®]





The following is representative of the Code of Ethics in effect for each Fund:





CODE OF ETHICS





With respect to non-affiliated Board members and all other access persons to the extent that they are not covered by The Capital Group Companies, Inc. policies:





· No Board member shall so use his or her position or knowledge gained therefrom as to create a conflict between his or her personal interest and that of the Fund.


· No Board member shall engage in excessive trading of shares of the fund or any other affiliated fund to take advantage of short-term market movements.


· Each non-affiliated Board member shall report to the Secretary of the Fund not later than thirty (30) days after the end of each calendar quarter any transaction in securities which such Board member has effected during the quarter which the Board member then knows to have been effected within fifteen (15) days before or after a date on which the Fund purchased or sold, or considered the purchase or sale of, the same security.


· For purposes of this Code of Ethics, transactions involving United States Government securities as defined in the Investment Company Act of 1940, bankers’ acceptances, bank certificates of deposit, commercial paper, or shares of registered open-end investment companies are exempt from reporting as are non-volitional transactions such as dividend reinvestment programs and transactions over which the Board member exercises no control.


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In addition, the Fund has adopted the following standards in accordance with the requirements of Form N-CSR adopted by the Securities and Exchange Commission pursuant to Section 406 of the Sarbanes-Oxley Act of 2002 for the purpose of deterring wrongdoing and promoting: 1) honest and ethical conduct, including handling of actual or apparent conflicts of interest between personal and professional relationships; 2) full, fair, accurate, timely and understandable disclosure in reports and documents that a fund files with or submits to the Commission and in other public communications made by the fund; 3) compliance with applicable governmental laws, rules and regulations; 4) the prompt internal reporting of violations of the Code of Ethics to an appropriate person or persons identified in the Code of Ethics; and 5) accountability for adherence to the Code of Ethics. These provisions shall apply to the principal executive officer or chief executive officer and treasurer (“Covered Officers”) of the Fund.





1. It is the responsibility of Covered Officers to foster, by their words and actions, a corporate culture that encourages honest and ethical conduct, including the ethical resolution of, and appropriate disclosure of conflicts of interest. Covered Officers should work to assure a working environment that is characterized by respect for law and compliance with applicable rules and regulations.


2. Each Covered Officer must act in an honest and ethical manner while conducting the affairs of the Fund, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships. Duties of Covered Officers include:


· Acting with integrity;
· Adhering to a high standard of business ethics; and
· Not using personal influence or personal relationships to improperly influence investment decisions or financial reporting whereby the Covered Officer would benefit personally to the detriment of the Fund.


3. Each Covered Officer should act to promote full, fair, accurate, timely and understandable disclosure in reports and documents that the Fund files with or submits to, the Securities and Exchange Commission and in other public communications made by the Fund.


· Covered Officers should familiarize themselves with disclosure requirements applicable to the Fund and disclosure controls and procedures in place to meet these requirements; and
· Covered Officers must not knowingly misrepresent, or cause others to misrepresent facts about the Fund to others, including the Fund’s auditors, independent directors, governmental regulators and self-regulatory organizations.


4. Any existing or potential violations of this Code of Ethics should be reported to The Capital Group Companies’ Personal Investing Committee. The Personal Investing Committee is authorized to investigate any such violations and report their findings to the Chairman of the Audit Committee of the Fund. The Chairman of the Audit Committee may report violations of the Code of Ethics to the Board or other appropriate entity including the Audit Committee, if he or she believes such a reporting is appropriate. The Personal Investing Committee may also determine the appropriate sanction for any violations of this Code of Ethics, including removal from office, provided that removal from office shall only be carried out with the approval of the Board.


5. Application of this Code of Ethics is the responsibility of the Personal Investing Committee, which shall report periodically to the Chairman of the Audit Committee of the Fund.


6. Material amendments to these provisions must be ratified by a majority vote of the Board. As required by applicable rules, substantive amendments to the Code of Ethics must be filed or appropriately disclosed.






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